Question 1

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.E) A) and C)
F) None of the above

Question 2

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.E) A) and D)
F) None of the above

Question 3

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.E) A) and D)
F) B) and C)

Question 4

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.E) A) and C)
F) A) and D)

Question 5

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.E) All of the above
F) B) and D)

Question 6

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.E) B) and C)
F) None of the above

Question 7

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.E) None of the above
F) All of the above

Question 8

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.E) A) and D)
F) A) and C)

Question 9

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.E) A) and B)
F) C) and D)

Question 10

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.E) None of the above
F) A) and B)

Question 11

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.F) A) and D)
G) B) and C)

Question 12

Exports minus imports equal _____________.

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

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.E) None of the above
F) A) and D)

Question 15

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.E) A) and C)
F) A) and D)

Question 16

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.E) A) and D)
F) B) and C)

Question 17

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...

Exam 8: The Export-Import Sector

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.

Correct Answer
verified

Which statement is true?

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

The main criticism Joseph Stiglitz levels at the IMF is that

Correct Answer
verified

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.

Correct Answer
verified

The basis for international trade is

Correct Answer
verified

Since the GATT agreement in 1947,the world has experienced

Correct Answer
verified

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

Correct Answer
verified

Exports minus imports equal _____________.

Correct Answer
verified

Net exports

Correct Answer
verified

Which statement is true?

Correct Answer
verified

All modern economies

Correct Answer
verified

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.

Correct Answer
verified

Net exports is a negative figure whenever

Correct Answer
verified

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

Correct Answer
verified

The NAFTA agreement

Correct Answer
verified

Exam 8: The Export-Import Sector

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.

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The main criticism Joseph Stiglitz levels at the IMF is that

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The basis for international trade is

Correct AnswerverifiedShow Answer

Since the GATT agreement in 1947,the world has experienced

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Exports minus imports equal _____________.

Correct AnswerverifiedShow Answer

Net exports

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

All modern economies

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Net exports is a negative figure whenever

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The NAFTA agreement

Correct AnswerverifiedShow Answer

Correct Answer
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