Deck 52: Exports and Imports

Question 1

Whats defention of terms:
-exports

Answer 1

what a country sells to foreigners

Question 2

Whats defention of terms:
-imports

Answer 2

what a country buys from foreigners

Question 3

Whats defention of terms:
-net exports

Answer 3

the difference between what is sold to other countries and what is purchased from other countries

Question 4

Whats defention of terms:
-trade deficit

Question 5

Whats defention of terms:
-trade surplus

Question 6

Explain the relationship of positive or negative net exports and aggregate demand.
-How does the usual pattern of American trade over the cycle tend to reduce demand for American products?

Question 7

Explain the relationship of positive or negative net exports and aggregate demand.
-How does a trade surplus affect aggregate expenditures? Explain. How does a trade deficit affect aggregate expenditures? Explain.

Question 8

Describe why the trade deficit rises further in economic expansions but declines in ?contractions.
-Describe why the trade deficit rises further in economic expansions but declines in contractions.

Question 9

Describe why the trade deficit rises further in economic expansions but declines in ?contractions.
-How does the high price of raw materials in an expansion hurt the American economy?

Question 10

What are net exports?

A) exports after all taxes have been paid.
B) exports minus imports.
C) exports plus imports.
D) exports before payment of taxes.

Question 11

Holding everything else constant, if exports are greater than imports
a. there is a net inflow of money from foreign countries.
b. there is a net outflow of money to foreign countries.
c. there is a net inflow of goods from foreign countries.
d. there is a trade deficit.

Question 12

For the past 30 years or so, the United States has

A) imported more goods and services than it exported.
B) exported more goods and services than it imported.
C) exported and imported approximately the same amount of goods and services.
D) imported more than exports only during recessions.

Question 13

How does the level of imports change over the business cycle?

A) imports tend to fall during expansions and rise during contractions.
B) imports tend to rise during expansions and fall during contractions.
C) remain fairly constant over the business cycle.
D) imports tend to fall during expansions and remain flat during a contraction.

Question 14

A US trade deficit means that

A) more money is flowing into the US than flowing out.
B) more money is flowing out of the US than flowing in.
C) no money flows into the US at all.
D) no money flows out of the US at all.

Question 15

The main determinant of US exports

A) is the level of aggregate demand in the US
B) is the level of aggregate demand in other countries.
C) is the level of imports.
D) is the level of US consumer spending.

Question 16

A US trade surplus means that

A) more money is flowing into the US than flowing out.
B) more money is flowing out of the US than flowing in.
C) no money flows into the US at all.
D) no money flows out of the US at all.

Question 17

A US trade surplus means that

A) American firms have a growing inventory of unsold goods.
B) the US economy is importing more goods and services than it exports.
C) the US economy is exporting more goods and services than it imports.
D) The US government has collected more in tax revenues than it is currently spending.

Question 18

A US trade deficit means that

A) American firms have a declining inventory of unsold goods.
B) the US economy is importing more goods and services than it exports.
C) the US economy is exporting more goods and services than it imports.
D) The US government has collected more in tax revenues than it is currently spending.

Question 19

What happens to the demand and price of imported raw materials over the business cycle?

A) at the beginning of an expansion, there is low demand and low prices.
B) at the beginning of an expansion, there is high demand and high prices.
C) at the beginning of an expansion, there is low demand and high prices.
D) at the beginning of an expansion, there is high demand and low prices.