Question 1

Net exports is a negative figure whenever

Accepted Answer

A) a nation's exports of goods and services exceed its imports. 
B) a nation's imports of goods and services exceed its exports. 
C) inventories dwindle. 
D) gross savings is greater than net investment. 
A) a nation's exports of goods and services exceed its imports. 
B) a nation's imports of goods and services exceed its exports. 
C) inventories dwindle. 
D) gross savings is greater than net investment.

Question 2

The main criticism Joseph Stiglitz levels at the IMF is that

Accepted Answer

A) it provides too many loans that are not repaid. 
B) it no longer promotes economic growth,but rather contraction. 
C) it does not provide enough loans. 
D) it does not sufficiently promote the market system. 
A) it provides too many loans that are not repaid. 
B) it no longer promotes economic growth,but rather contraction. 
C) it does not provide enough loans. 
D) it does not sufficiently promote the market system.

Question 3

All modern economies

Accepted Answer

A) depend on self-sufficient workers. 
B) depend on workers who have acquired a wide variety of skills ("jacks of all trades"). 
C) depend on workers with a high degree of specialized skills. 
D) depend on workers who can build their own tools. 
A) depend on self-sufficient workers. 
B) depend on workers who have acquired a wide variety of skills ("jacks of all trades"). 
C) depend on workers with a high degree of specialized skills. 
D) depend on workers who can build their own tools.

Question 4

Each of the following is a characteristic of the European Union EXCEPT that

Accepted Answer

A) workers from any EU country could seek work in any other member country. 
B) the euro replaced the domestic currencies (eg.francs,marks,lira)in almost half of the member countries. 
C) its population and GDP are much smaller than those of the United States. 
D) freight is able to move anywhere within the EU without checkpoint delays and paperwork. 
A) workers from any EU country could seek work in any other member country. 
B) the euro replaced the domestic currencies (eg.francs,marks,lira)in almost half of the member countries. 
C) its population and GDP are much smaller than those of the United States. 
D) freight is able to move anywhere within the EU without checkpoint delays and paperwork.

Question 5

The NAFTA agreement

Accepted Answer

A) was supported by most economists and people in the business community. 
B) has NOT led to the loss of millions of U.S.jobs to Mexico. 
C) has less economic integration than the European Union. 
D) did not eliminate all internal tariffs among its three members. 
E) All of the answers are true. 
A) was supported by most economists and people in the business community. 
B) has NOT led to the loss of millions of U.S.jobs to Mexico. 
C) has less economic integration than the European Union. 
D) did not eliminate all internal tariffs among its three members. 
E) All of the answers are true.

Question 6

Exports minus imports equal _____________.

Accepted Answer

The answer of Exports minus imports equal _____________....

Question 7

The basis for international trade is

Accepted Answer

A) that a nation can import a particular good or service at a lower cost than if it were produced domestically. 
B) Specialization. 
C) both countries can gain from trade. 
D) All of the choices are true. 
A) that a nation can import a particular good or service at a lower cost than if it were produced domestically. 
B) Specialization. 
C) both countries can gain from trade. 
D) All of the choices are true.

Question 8

Since the GATT agreement in 1947,the world has experienced

Accepted Answer

A) virtually no unfair trading practices among nations. 
B) the complete elimination of tariffs and other trade barriers among nations. 
C) a reduction of trade barriers among nations in the WTO. 
D) all of the choices are true. 
A) virtually no unfair trading practices among nations. 
B) the complete elimination of tariffs and other trade barriers among nations. 
C) a reduction of trade barriers among nations in the WTO. 
D) all of the choices are true.

Question 9

If imports exceed exports it would be called a trade _________.

Accepted Answer

The answer of If imports exceed exports it would be...

Question 10

Statement I: We pay for a large part of our trade deficit with U.S.dollars.
Statement II: The United States is much more dependent on foreign trade than it was 30 years ago.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 11

In the treatment of American exports and imports,national income accountants

Accepted Answer

A) subtract exports,but add imports,in calculating GDP. 
B) subtract both exports and imports in calculating GDP. 
C) add both exports and imports in calculating GDP. 
D) add exports,but subtract imports,in calculating GDP. 
A) subtract exports,but add imports,in calculating GDP. 
B) subtract both exports and imports in calculating GDP. 
C) add both exports and imports in calculating GDP. 
D) add exports,but subtract imports,in calculating GDP.

Question 12

Which statement is true?

Accepted Answer

A) A country like Japan would go to the World Bank to borrow currency to stabilize the yen. 
B) The WTO has a Dispute Settlement Body to handle trade disagreements among member nations. 
C) GATT was established at the end of the Great Depression. 
D) The IMF was set up to aid developing countries build infrastructure. 
A) A country like Japan would go to the World Bank to borrow currency to stabilize the yen. 
B) The WTO has a Dispute Settlement Body to handle trade disagreements among member nations. 
C) GATT was established at the end of the Great Depression. 
D) The IMF was set up to aid developing countries build infrastructure.

Question 13

Statement I: The WTO regulates world trade.
Statement II: The basis for international trade is that all nations stand to gain through specialization and exchange with other nations.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 14

Net exports

Accepted Answer

A) are the smallest component of GDP. 
B) equal exports minus imports. 
C) have been negative in the United States since the mid-1970s. 
D) All of the choices are true of net exports. 
A) are the smallest component of GDP. 
B) equal exports minus imports. 
C) have been negative in the United States since the mid-1970s. 
D) All of the choices are true of net exports.

Question 15

Which statement is true?

Accepted Answer

A) Since 2007,the U.S.trade deficit has fallen significantly. 
B) Net exports has always been negative. 
C) The U.S.exports more services than merchandise (in terms of dollars). 
D) The U.S.balance of trade was negative for most of the 20th century. 
A) Since 2007,the U.S.trade deficit has fallen significantly. 
B) Net exports has always been negative. 
C) The U.S.exports more services than merchandise (in terms of dollars). 
D) The U.S.balance of trade was negative for most of the 20th century.

Question 16

If the exchange rate between the euro and the U.S.dollar is 0.85 and you eat a meal in Paris that cost 40 euros,the meal cost _________ U.S.dollars.

Accepted Answer

The answer of If the exchange rate between the euro...

Question 17

Statement I: Adam Smith believed that people should never buy anything if they can make it themselves.
Statement II: The basis for international trade is that if a nation can import a particular good or service at a lower cost than if it were produced domestically,it should trade for that good.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Exam 8: The Export-Import Sector

Net exports is a negative figure whenever

The main criticism Joseph Stiglitz levels at the IMF is that

All modern economies

Each of the following is a characteristic of the European Union EXCEPT that

The NAFTA agreement

Exports minus imports equal _____________.

The basis for international trade is

Since the GATT agreement in 1947,the world has experienced

If imports exceed exports it would be called a trade _________.

Statement I: We pay for a large part of our trade deficit with U.S.dollars. Statement II: The United States is much more dependent on foreign trade than it was 30 years ago.

In the treatment of American exports and imports,national income accountants

Which statement is true?

Statement I: The WTO regulates world trade. Statement II: The basis for international trade is that all nations stand to gain through specialization and exchange with other nations.

Net exports

Which statement is true?

If the exchange rate between the euro and the U.S.dollar is 0.85 and you eat a meal in Paris that cost 40 euros,the meal cost _________ U.S.dollars.

Statement I: Adam Smith believed that people should never buy anything if they can make it themselves. Statement II: The basis for international trade is that if a nation can import a particular good or service at a lower cost than if it were produced domestically,it should trade for that good.

A Brief Economic History of the United States

Resource Utilization

The Mixed Economy

Supply and Demand

The Household Consumption Sector

The Business Investment Sector

The Government Sector

Gross Domestic Product

Economic Fluctuations, unemployment, and Inflation

Classical and Keynesian Economics

Fiscal Policy and the National Debt

Money and Banking

The Federal Reserve and Monetary Policy

A Century of Economic Theory

Economic Growth and Productivity

Demand,supply,and Equilibrium

The Price Elasticities of Demand and Supply

Theory of Consumer Behavior

Cost

Profit, loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters