Question 1

When international trade is based on the concept of comparative advantage,then a country will specialize in producing goods that the country can produce ________.

Accepted Answer

A)   at a lower cost than other countries in the same time span
B)   at a higher price than other countries in the same time span
C)   more of than other countries in the same time span
D)   faster than other countries in the same time spanE) A) and B)
F) A) and C)

Question 2

When the United States exports goods to other countries,the United States ________.

Accepted Answer

A)   makes payments to other countries
B)   receives payments from other countries
C)   makes transfers to other countries
D)   receives transfers from other countriesE) B) and C)
F) A) and B)

Question 3

The current account is the sum of ________.

Accepted Answer

A)   net exports and net transfers from abroad
B)   net exports and net investment from abroad
C)   consumption, investment, and government expenditure
D)   net exports, net factor income from abroad, and net transfers from abroadE) C) and D)
F) B) and D)

Question 4

When the United States imports goods from other countries,the United States ________.

Accepted Answer

A)   makes payments to other countries
B)   receives payments from other countries
C)   makes transfers to other countries
D)   receives transfers from other countriesE) A) and B)
F) B) and C)

Question 5

The correct calculation for the current account is given by ________.

Accepted Answer

A)   Exports + Net factor payments from abroad + Net domestic transfers
B)   Net exports + Net domestic factor payments + Net domestic transfers
C)   Net exports + Net factor payments from abroad + Net transfers from abroad
D)   Net exports + Net domestic factor payments + Net transfers from abroadE) B) and C)
F) A) and D)

Question 6

If ________,net exports are zero.

Accepted Answer

A)   imports exceed exports
B)   exports equal imports
C)   imports equal transfer payments
D)   exports exceed transfer paymentE) None of the above
F) C) and D)

Question 7

A tariff does not raise any revenue for the government if ________.

Accepted Answer

A)   it reduces imports to zero
B)   exports equal imports
C)   imports exceed exports
D)   exports exceed importsE) B) and C)
F) None of the above

Question 8

Assuming all else equal,if ________,net exports are negative.

Accepted Answer

A)   imports exceed exports
B)   exports exceed imports
C)   imports exceed transfer payments
D)   exports exceed transfer paymentsE) All of the above
F) A) and D)

Question 9

________ refers to the increase in domestic assets held by foreigners minus the increase in foreign assets held domestically.

Accepted Answer

A)   The current account
B)   The financial account
C)   Foreign direct investment
D)   A trade deficitE) A) and B)
F) None of the above

Question 10

List all the sources of income-based payments from foreigners.

Accepted Answer

The different sources of income-based pa...

Question 11

Foreign residents can receive income-based payments in which of the following forms?

Accepted Answer

A)   Exports, factor payments to foreigners, and transfers to foreigners
B)   Imports, factor payments from foreigners, and transfers to foreigners
C)   Exports, factor payments from foreigners, and transfers to foreigners
D)   Imports, factor payments to foreigners, and transfers to foreignersE) A) and D)
F) All of the above

Question 12

Everything else equal,when U.S.exports ________,net capital outflows ________.

Accepted Answer

A)   increase; increase
B)   increase; decrease
C)   decrease; increase
D)   decrease; are unaffectedE) A) and B)
F) A) and C)

Question 13

Suppose a country's net exports equal −$2.1 billion.Which of the following will happen if the volume of exports increases by $3 billion without any change in the volume of imports?

Accepted Answer

A)   The country's net exports will equal −$5.1 billion.
B)   The country's net exports will equal −$0.9 billion.
C)   The country's net exports will become positive.
D)   The country's net exports will become zero.E) C) and D)
F) A) and D)

Question 14

There exists a strong ________ correlation between GDP per capita and ________.

Accepted Answer

A)   positive; mortality rate
B)   negative; child labor
C)   positive; the unemployment rate
D)   negative; life expectancyE) A) and B)
F) B) and C)

Question 15

Everything else equal,when U.S.imports ________,net capital outflows ________.

Accepted Answer

A)   increase; increase
B)   increase; decrease
C)   decrease; decrease
D)   decrease; are unaffectedE) B) and D)
F) None of the above

Question 16

A U.S.company selling cameras to a Japanese company is an example of a(n) ________.

Accepted Answer

A)   export to the United States
B)   import by Japan
C)   foreign direct investment by the United States
D)   transfer payment to the United StatesE) B) and C)
F) A) and D)

Question 17

Which of the following is included a country's current account?
i.Exports of services
ii.Net transfers
iii.Increases in currency holdings

Accepted Answer

A)   i) , ii) , and iii) 
B)   i)  and ii) 
C)   i)  and iii) 
D)   ii)  and iii) E) A) and C)
F) B) and C)

Question 18

The national accounting identity relating the financial account to savings and investment is ________.

Accepted Answer

A)   I - S = NX
B)   NX - S = I
C)   NX = S - I
D)   S - I = -NXE) B) and C)
F) A) and C)

Question 19

Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples or 500 pounds of oranges in a year. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.
-Refer to the scenario above.Which of the following statements is true in this case?

Accepted Answer

A)   Beta has both comparative and absolute advantage in producing apples.
B)   Zeta has both comparative and absolute advantage in producing apples.
C)   Beta has a comparative advantage in producing oranges and absolute advantage in producing apples.
D)   Zeta has a comparative advantage in producing apples and absolute advantage in producing oranges.E) C) and D)
F) B) and D)

Question 20

Which of the following statements is true?
i.Specialization does not work without trade.
ii.Trade does not work without specialization.

Accepted Answer

A)   i)  and ii)  are both true
B)   i)  and ii)  are both false
C)   i)  is true and ii)  is false
D)   i)  is false and ii)  is trueE) A) and B)
F) A) and C)

Exam 14: Macroeconomics and International Trade

The national accounting identity relating the financial account to savings and investment is ________.

Correct Answer
verified

________ refers to the increase in domestic assets held by foreigners minus the increase in foreign assets held domestically.

Correct Answer
verified

The current account is the sum of ________.

Correct Answer
verified

Everything else equal,when U.S.imports ,net capital outflows .

Correct Answer
verified

A tariff does not raise any revenue for the government if ________.

Correct Answer
verified

Everything else equal,when U.S.exports ,net capital outflows .

Correct Answer
verified

When the United States exports goods to other countries,the United States ________.

Correct Answer
verified

There exists a strong correlation between GDP per capita and .

Correct Answer
verified

Which of the following is included a country's current account? i.Exports of services ii.Net transfers iii.Increases in currency holdings

Correct Answer
verified

When the United States imports goods from other countries,the United States ________.

Correct Answer
verified

When international trade is based on the concept of comparative advantage,then a country will specialize in producing goods that the country can produce ________.

Correct Answer
verified

A U.S.company selling cameras to a Japanese company is an example of a(n) ________.

Correct Answer
verified

The correct calculation for the current account is given by ________.

Correct Answer
verified

List all the sources of income-based payments from foreigners.

Correct Answer
verified
The different sources of income-based pa...
View Answer

Suppose a country's net exports equal −$2.1 billion.Which of the following will happen if the volume of exports increases by $3 billion without any change in the volume of imports?

Correct Answer
verified

Which of the following statements is true? i.Specialization does not work without trade. ii.Trade does not work without specialization.

Correct Answer
verified

Foreign residents can receive income-based payments in which of the following forms?

Correct Answer
verified

Assuming all else equal,if ________,net exports are negative.

Correct Answer
verified

If ________,net exports are zero.

Correct Answer
verified

Correct Answer
verified

Exam 14: Macroeconomics and International Trade

The national accounting identity relating the financial account to savings and investment is ________.

Correct AnswerverifiedShow Answer

________ refers to the increase in domestic assets held by foreigners minus the increase in foreign assets held domestically.

Correct AnswerverifiedShow Answer

The current account is the sum of ________.

Correct AnswerverifiedShow Answer

Everything else equal,when U.S.imports ________,net capital outflows ________.

Correct AnswerverifiedShow Answer

A tariff does not raise any revenue for the government if ________.

Correct AnswerverifiedShow Answer

Everything else equal,when U.S.exports ________,net capital outflows ________.

Correct AnswerverifiedShow Answer

When the United States exports goods to other countries,the United States ________.

Correct AnswerverifiedShow Answer

There exists a strong ________ correlation between GDP per capita and ________.

Correct AnswerverifiedShow Answer

Which of the following is included a country's current account? i.Exports of services ii.Net transfers iii.Increases in currency holdings

Correct AnswerverifiedShow Answer

When the United States imports goods from other countries,the United States ________.

Correct AnswerverifiedShow Answer

When international trade is based on the concept of comparative advantage,then a country will specialize in producing goods that the country can produce ________.

Correct AnswerverifiedShow Answer

A U.S.company selling cameras to a Japanese company is an example of a(n) ________.

Correct AnswerverifiedShow Answer

The correct calculation for the current account is given by ________.

Correct AnswerverifiedShow Answer

List all the sources of income-based payments from foreigners.

Correct AnswerverifiedThe different sources of income-based pa...View AnswerShow Answer

Suppose a country's net exports equal −$2.1 billion.Which of the following will happen if the volume of exports increases by $3 billion without any change in the volume of imports?

Correct AnswerverifiedShow Answer

Which of the following statements is true? i.Specialization does not work without trade. ii.Trade does not work without specialization.

Correct AnswerverifiedShow Answer

Foreign residents can receive income-based payments in which of the following forms?

Correct AnswerverifiedShow Answer

Assuming all else equal,if ________,net exports are negative.

Correct AnswerverifiedShow Answer

If ________,net exports are zero.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Everything else equal,when U.S.imports ,net capital outflows .

Correct Answer
verified

Correct Answer
verified

Everything else equal,when U.S.exports ,net capital outflows .

Correct Answer
verified

Correct Answer
verified

There exists a strong correlation between GDP per capita and .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The different sources of income-based pa...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified