Intb 1St Test

Front 1

How do we calculate Index of Openness?

Back 1

Exports + Imports / GDP

Front 2

a set of rules governing behavior, whether written or not

Back 2

Institution

Front 3

written set of rules

Back 3

Formal Institution

Front 4

tradition or custom

Back 4

Informal Institution

Front 5

openness doesn't tell anything about ______ __ _____

Back 5

Barriers to Trade

Front 6

Requirement (or change) for the borrowing member to carry out economic reforms in exchange for a loan

Back 6

IMF Conditionality

Front 7

2 important functions to reduce free riding:

Back 7

1. Maintaining order in international economic relations
2. reducing uncertainty

Front 8

Technological improvements _______ financial capital flows

Back 8

Increase

Front 9

main goal of the IMF

Back 9

global economic stability

Front 10

the ______ helps regulate trade while the _____ _____ helps regulate financial growth

Back 10

WTO
World Bank

Front 11

Countries can gain if they take advantage of ________ _________

Back 11

absolute advantage

Front 12

Gains from trade means

Back 12

Benefits of trade outweigh the losses

Front 13

Held by a country that produces more of a certain good per hour worked than another

Back 13

Absolute Advantage

Front 14

Held by a country that has lower opportunity costs of producing a good than its trading partners do.

Back 14

Comparative Advantage

Front 15

In the medium and long run, what has influence on the number of jobs?

Back 15

Government Macroeconomic Policies (nothing to do with trade)

Front 16

What is the basis of all free trade?

Back 16

Comparative Advantage

Front 17

What does the Hecksher Ohlin theorem predict?

Back 17

Which goods will be exported

Front 18

If the PPC is bowed outward, that means...

Back 18

Production costs are increasing

Front 19

What does the Stolper-Samuelson Theorem predict?

Back 19

The income distribution effects of trade

Front 20

International trade of products made within the same industry

Back 20

Intraindustry trade

Front 21

International trade of products between two different industries

Back 21

Interindustry Trade

Front 22

Intraindustry trade relies on _______ __ _______

Back 22

Economies of scale

Front 23

We measure Intraindustry trade with the ________ _________ _____.

Back 23

Grubel-Lloyd Index

Front 24

Why are tariffs higher in developing countries?

Back 24

cheap and efficient way to collect government revenue

Front 25

After tariffs, the consumer surplus, which is ______ the demand curve and ______ the price line goes ____.

Back 25

Under, Over, Down

Front 26

After tariffs, the producer surplus, which is _____ the supply curve and ______ the price line goes ____.

Back 26

Over, Under, Up

Front 27

A section of the U.S. 1974 trade act that requires the U.S. trade representative to take action against any nation that persistently engages in unfair trade practices

Back 27

Section 301

Front 28

Requires the USTR to monitor property rights enforcement around the world

Back 28

Special 301

Front 29

__________ allow firms to sell their products at lower prices

Back 29

Subsidies

Front 30

Two or more countries adopt a common set of standards

Back 30

Harmonization of Standards

Front 31

Countries maintain their own standards, but accept the standards of others as valid and sufficient.

Back 31

Mutual recognition of standards

Front 32

Countries maintain their own standards and refuse to recognize the standards of others

Back 32

Separate Standards

Front 33

Which industry has the highest national welfare loss in EU and Japan?

Back 33

Agriculture

Front 34

Which industry has the highest national welfare loss in the US?

Back 34

Clothing

Front 35

Rich countries have higher ______ and _______ standards.

Back 35

labor, environmental

Front 36

Barriers of trade are BAD why?

Back 36

they create inefficient allocation of resources

Front 37

What are better job creation tools? (2)

Back 37

sound macroeconomic policies and flexible labor markets

Front 38

adoption of the lowest level of standards possible in order to attract foreign firms

Back 38

race to the bottom

Front 39

a majority of the world lives in _____-_____ income

Back 39

lower-middle

Front 40

Is there an environmental race to the bottom?

Back 40

NO

Front 41

If a home country forces firms operating at home or abroad to follow domestic environmental standards, it _________ race to the bottom

Back 41

decreases

Front 42

relative importance of trade to a national economy

Back 42

openness (lets us know how important exports is to GDP)

Front 43

Economists overwhelmingly support more open markets because trade...

Back 43

leads to a better allocation of scarce resources

Front 44

US highest GDP in the world
China Second
Japan Third

Back 44

Quotas go in the same order

Front 45

The ______ ______ established the WTO, measures regulating treatment of intellectual property, and new measures for trade dispute settlements.

Back 45

Uruguay Round

Front 46

Trade Creation > Trade Diversion

Back 46

Trade Creation > Trade Diversion

Front 47

Private markets fail to supply public goods because of _____ ______.

Back 47

Free Riding

Front 48

The complete absence of trade

Back 48

Autarky

Front 49

the amount of output obtained from a unit of input

Back 49

productivity

Front 50

trade is based on _______ Advantage, not _______ Advantage.

Back 50

Comparative, Absolute

Front 51

Shows the tradeoffs a country faces when choosing between two goods

Back 51

Production Possibilities Curve

Front 52

Adam Smith's Model = ________ ________
Ricardian Model = ________ _______

Back 52

Absolute Advantage

Comparative Advantage

Front 53

demand for an input

Back 53

derived demand