1. Which description doesnotcorrectly characterize the growth of world trade?

Since the end of World War II, world trade has grown much faster than world output.

By 2005, total world exports were 20.5% of world GDP.

The index of openness is the ratio of trade to GDP.

Openness reveals a country's trade policies or define its barriers to trade.

1. Which description doesnotcorrectly characterize contemporary international economic relations?

Regional Trade Agreements are created by a group of countries within a geographical region that protect themselves from imports from non-members.

The most important multilateral organization include The International Monetary Fund (IMF), the World Bank, the General Agreement on Tariffs and Trade (GATT), the United Nations (UN), the World Trade Organization

High-income countries have high barriers to imports of manufactured goods as trade barriers came down during the second half of the twentieth century

At the end of World War II, the United States and its allies created a number of international organizations to maintain international economic and political stability.

1. Which one of the following isnotone of the problems of institutions?

In many instances, individuals, groups, and governments have little incentive to comply with the decisions that are produced by the political process

In the international political system, the police and the judicial system are charged with enforcing individual compliance with collective decisions.

Even in cases where a group or a country as a whole does benefit from a particular decision, it may believe it could do even better if it cheated a little bit.

In international economic organizations, the choice rule is often relative bargaining power, and decisions typically reflect the preferences of the more powerful nations.

1. Which description doescorrectlycharacterize factor movements?

As national economies become more interdependent, labor and capital generally move less easily across international borders

Factor movements are not indicators of economic integration.

Factors of production are an economic term that describes the inputs used in the production of goods or services to make an economic profit.

Capital refers to the effort expended by an individual to bring a product or service to the market