Home > Consumer Behavior 101 > Quizzes > Economics 101 Practice Test: Open-Economy Macroeconomics
Economics 101 Practice Test: Open-Economy Macroeconomics
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 37% • Most missed: “The nominal exchange rate is about 2 Aruban florin per dollar. If a basket of go…”
Open-economy macroeconomics is the study of an economy that interacts with other countries through various methods.  In an open economy, trading activity takes place between all countries. This means that it allows the buying and selling of goods and securities from neighboring countries.  Here are some things that an open economy can do: Trade in commodities and services, Purchase financial assets, Pick where to locate manufacturing plants, and Pick where to work.  An open economy interacts with other countries in two ways: It buys and sells goods and services in world product... Show more
Economics 101 Practice Test: Open-Economy Macroeconomics
Time left 00:00
25 Questions

1. Brad, a U.S. resident, builds and operates a boxing gym in Thailand. The purchase represents
2. If P = domestic prices, P* = foreign prices, and e is the exchange rate, which of the following is implied by purchasing-power parity?
3. If the U.S. real exchange rate appreciates relative to the French franc, U.S. exports to France
4. While making investment decisions, investors
5. The exchange rate is about 200 Kazakhstan tenge per dollar. According to purchasing power parity this exchange rate would rise if the price level in
6. Suppose the nominal exchange rate is 100, the domestic price index is 50, and the foreign price index is 10. The real exchange rate is:
7. Consider the following two actions. 1. Kohl’s, a U.S. department store chain, builds new stores in Sweden. 2. Rudy, a U.S. citizen, buys newly issued bonds from Campmore.com who uses the money to build additional warehouse space in the United States.
8. Brazil buys railroad engines from a U.S. firm and pays for them with bolivianos (Bolivian currency). By itself this transaction
9. If exchange rates are given in terms of how much foreign currency a dollar buys and how many foreign goods U.S. goods buy, then if the Fed increased the U.S. money supply other things the same, purchasing-power parity implies
10. Net exports of a country are the value of goods
11. If a resident of the United States buys stock in a Japanese corporation, this is an example of U.S.
12. On behalf of your firm, you make frequent trips to Liberia. You notice that you always have to pay fewer dollars to get the local currency to have your hair styled than you have to pay for similar styling in the United States. This is
13. Which of the following does purchasing-power parity imply?
14. Peter, a Canadian citizen, sells several hundred cases of smoked salmon to a restaurant chain in the United States. By itself this sale
15. Which of the following equations is correct?
16. If a U.S. shirtmaker purchases cotton from Egypt, U.S. net exports
17. After 1980, U.S. Net Foreign Investment fell dramatically, but the U.S. economy did not experience a similar fall in domestic investment. Hence, saving in the United States must
18. If a country has business opportunities that are relatively attractive compared to other countries, we would expect it to have
19. Suppose that the dollar buys more coffee in Kenya than in Brazil. Traders could make a profit by buying coffee in
20. Which of the following is a true statement?
21. Which of the following is correct?
22. The difference between savings in an open and closed economy equals
23. Suppose the dollar depreciates relative to the British pound. We know that:
24. U.S. imports account for about what percentage of GDP?
25. Paul, a U.S. citizen, opens a textbook company in Brazil. His expenditures

⚡ Recently practiced quizzes in this topic
Live quiz activity
Consumer Behavior 101 Practice Test: The Influence of Culture on Consumer Behavior Consumer Behavior 101 Practice Test: Personality and Consumer Behavior Consumer Behavior 101 Practice Test: Basics of Consumer Behavior Consumer Behavior 101 Practice Test: The Family and Its Social Class Standing Consumer Behavior 101 Practice Test: Consumer Motivation Consumer Behavior 101 Practice Test: Consumer Perception Consumer Behavior 101 Practice Test: Communication and Consumer Behavior Consumer Behavior 101 Practice Test: Consumer Attitude Formation and Change Consumer Behavior 101 Practice Test: Basics of Consumer Research Process Consumer Behavior 101 Practice Test: Consumers and the Diffusion of Innovations
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.