International Economics - Test Test

Question 1

How has a change in internet access from 2003 to 2019 most likely affected globalization?

Revolt · Accepted Answer

B: A 50 percent increase in internet access has most likely sped up globalization.

Question 2

Why do countries provide financial incentives?

Revolt · Accepted Answer

C: Financial incentives act as trade barriers.

Question 3

International trade organizations promote free trade by encouraging countries to

Revolt · Accepted Answer

A: limit their protectionism policies.

Question 4

Why might a country choose to devalue its currency?

Revolt · Accepted Answer

B: to encourage exports

Question 5

Why does the US import oil?

Revolt · Accepted Answer

B: because it is cheaper to import oil than to produce it

Question 6

Which process helps countries import things they cannot make while allowing them to specialize in exports?

Revolt · Accepted Answer

B: international trade

Question 7

What is the most common reason why countries create trade agreements?

Revolt · Accepted Answer

D: to create free trade

Question 8

Which of these is a positive incentive for domestic producers?

Revolt · Accepted Answer

C: a subsidy on domestic oranges

Question 9

Who decides which currency each country in the world uses?

Revolt · Accepted Answer

A: each individual country

Question 10

There would be no separation between one country’s economy and another’s if the entire world

Revolt · Accepted Answer

C: shared the same currency.

International Economics - Test Test Answers