31 - Chapter 13 Open-Economy Macroeconomics: Basic Concepts...

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Unformatted text preview: Chapter 13 Open-Economy Macroeconomics: Basic Concepts MULTIPLE CHOICE 1. International trade a. raises the standard of living in all trading countries. b. lowers the standard of living in all trading countries. c. leaves the standard of living unchanged. d. raises the standard of living for importing countries and lowers it for exporting countries. ANSWER: a. raises the standard of living in all trading countries. TYPE: M DIFFICULTY: 1 SECTION: 13.0 2. Foreign-produced goods and services that are sold domestically are called a. imports. b. exports. c. net imports. d. net exports.. ANSWER: a. imports. TYPE: M DIFFICULTY: 1 SECTION: 13.1 3. Net exports of a country are the value of a. goods and services imported minus the value of goods and services exported. b. goods and services exported minus the value of goods and services imported. c. goods exported minus the value of goods imported. d. goods imported minus the value of goods exported. ANSWER: b. goods and services exported minus the value of goods and services imported. TYPE: M DIFFICULTY: 1 SECTION: 13.1 4. Suppose that a country exports $100 million of goods and services and imports $75 million of goods and services, what is the value of net exports? a. $175 million b. $100 million c. $25 million d. –$25 million ANSWER: c. $25 million TYPE: M DIFFICULTY: 1 SECTION: 13.1 5. Oceania buys $100 of wine from Escudia and Escudia buys $40 of wool from Oceania. What are the net exports of Oceania and Escudia in that order? a. $140 and $140 b. $100 and $40 c. $60 and –$60 d. None of the above is correct. ANSWER: d. None of the above is correct. TYPE: M DIFFICULTY: 2 SECTION: 13.1 69 70 ✦ Chapter 13/Open-Economy Macroeconomics: Basic Concepts 6. When Dee, a U.S. citizen, purchases a designer dress made in Milan, the purchase is a. both a U.S. and Italian import. b. U.S. export and an Italian import. c. a U.S. import and an Italian export. d. neither an export nor an import for either country. ANSWER: c. a U.S. import and an Italian export. TYPE: M DIFFICULTY: 1 SECTION: 13.1 7. Roger lives in Iceland and purchases a snowmobile manufactured in the United States. This purchase is a. both a U.S. and Icelandic export. b. both a U.S. and Icelandic import. c. a U.S. import and an Icelandic export. d. a U.S. export and an Icelandic import. ANSWER: d. a U.S. export and an Icelandic import. TYPE: M DIFFICULTY: 1 SECTION: 13.1 8. The value of Peru’s exports minus the value of Peru’s imports is called a. Peru’s net capital inflow....
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This note was uploaded on 07/23/2009 for the course BUS BUS217 – taught by Professor Staff during the Spring '09 term at California Baptist University.

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31 - Chapter 13 Open-Economy Macroeconomics: Basic Concepts...

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