When macroeconomic policies are not coordinated,
A) macroeconomic policies will not be effective.
B) expansionary policies in one country are likely to increase global imbalances.
C) worldwide recessions are likely.
D) low-income countries cannot grow.
Question 2 - Empirical tests of the theory of comparative advantage have provided
A) strong support for both the Ricardian and Heckscher-Ohlin models.
B) mixed support for the Ricardian model and strong support for the Heckscher-Ohlin model.
C) strong support for the Ricardian model and mixed support for the Heckscher-Ohlin model.
D) mixed support for both Ricardian and Heckscher-Ohlin models.
E) no support for either the Ricardian or the Heckscher-Ohlin models.
Question 3 - The European Union membership criteria includes all of the following EXCEPT
A) the country must participate in free trade with all of its goods and services.
B) the country must follow market-based economics.
C) the country must formally adopt the EU-wide rules such as technical standards, environmental inspections, banking supervision, etc.
D) the country must be a stable functioning democracy.
Question 4 - Certified shade-grown, organic coffee is an example of requiring home standards in a foreign market instead of trade barriers.
Indicate whether the statement is true or false
Question 5 - Which of the following is NOT a likely goal of macroeconomic coordination between nations?
A) Reducing trade barriers
B) Achieving a desirable level of world economic growth
C) Avoiding a global economic crisis
D) Correcting global economic imbalances
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