Which of the following measures of globalization was not affected during the aftermath of the terrorist attacks in the United States on September 11, 2001?
a. World trade
b. Global foreign direct investment
c. International travel and tourism
d. International telephone calls
e. Political engagement
Question 2If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are greater than the external costs,
a. More than the efficient amount is being produced
b. Less than the efficient amount is being produced
c. the efficient amount is being produced
d. We do not know whether the efficient amount, or more or less, is being produced.
Question 3A decrease in the expected level of inflation will cause short-run aggregate supply to ____ and the short-run Phillips curve to ____.
a. shift left; shift right
b. shift left; shift left
c. shift right; shift right
d. shift right; shift left
Question 4Which of the following statements is true?
a. World trade as a fraction of world GDP is much less than it was at the end of the 19th century.
b. War decreases the pace of globalization.
c. Large countries such as the U.S., Russia, and Japan have high scores in economic integration when measured against the criteria of Foreign Policy magazine.
d. Poor countries tend to have high scores in the personal contact area when measured against the criteria of Foreign Policy magazine.
e. The U.S. increased its international investments after the September 11, 2001 terrorist attacks to revive their economy.
Question 5If there are both external benefits and external costs:
a. the social marginal benefit of an activity exceeds the private marginal benefit.
b. the private marginal benefit of an activity exceeds the private marginal cost.
c. the social marginal cost of an activity exceeds the private marginal cost.
d. Both a. and c. are true.
Question 6If the actual unemployment rate is less than the natural rate of unemployment, there will be a tendency toward:
a. increased inflation and a leftward shift of the short-run Phillips curve.
b. decreased inflation and a rightward shift of the short-run Phillips curve.
c. increased inflation and a rightward shift of the short-run Phillips curve.
d. decreased inflation and a leftward shift of the short-run Phillips curve.
Question 7Which of the following is a measure of political globalization (one of the three categories used by the KOF Swiss Economic Institute)?
a. Participation in U.N. peace missions
b. Spread of ideas
c. Flow of information
d. Limits on externalities
e. Progressive taxation
Question 8A positive externality is present whenever:
a. the social marginal benefit of an activity exceeds the private marginal benefit.
b. the private marginal benefit of an activity exceeds the private marginal cost.
c. the social marginal cost of an activity exceeds the private marginal cost.
d. none of the above.
Question 9According to the natural rate hypothesis:
a. a short-term as well as long-term trade-off exists between unemployment and inflation.
b. economic fluctuations are the result of external negative and positive productivity shocks to the economy
c. workers and consumers incorporate the likely consequences of government policy changes into their expectations by quickly adjusting wages and prices.
d. the economy will self-correct to the natural rate of unemployment.
Question 10Countries that have a large number of embassies, have memberships to international organizations, and participate in UN peace missions would be categorized under _____ globalization.
a. cultural
b. social
c. political
d. economic
e. ethical
Question 11An negative externality is present whenever:
a. the private marginal cost of an activity exceeds the private marginal benefit.
b. the private marginal benefit of an activity exceeds the private marginal cost.
c. the social marginal cost of an activity exceeds the private marginal cost.
d. none of the above
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