Chapter 14--MacroTB - CHAPTER 14 International Trade...

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MULTIPLE-CHOICE 1. In the 1970s, farmers were able to “transform” __________ into __________. a. steel; cars b. corn; ethanol c. corn; cars d. beets; sugar e. soy; sushi Answer: c. Section: 14.1 2. The example demonstrating how corn can be “turned into” cars illustrates how trade can be viewed as a. bad for farmers. b. good for certain industries. c. an alternative technology for producing goods. d. undermining America’s ability to produce both corn and cars. e. turning the United States into a low value-added economy. Answer: c. Section: 14.1 3. As with new technology, trade can be viewed as a way for a. an economy to increase its production possibilities and welfare. b. an economy to specialize to the detriment of everyone. c. exporters to benefit at the expense of everyone else. d. an economy to reduce its aggregate production. e. None of the above. Answer: a. Section: 14.1 4. Over time, the “economic distance” between countries has a. remained unchanged. b. fallen as costs have stayed constant. c. fallen as costs have fallen. d. increased with more countries actively engaging in trade. e. None of the above. Answer: c. Section: 14.2 5. Explanations of why trade has increase worldwide, particularly since the early 1970s, include a. the reduction in shipping and production costs. b. the decline in trade barriers. c. growing global incomes. d. All of the above. e. a and b. Answer: d. Section: 14.2 6. About __________ percent of the U.S. GDP is exported. a. 5 b. 15 c. 10 d. 20 e. 40 Answer: c. Section: 14.2 146 International Trade CHAPTER 14
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International Trade | 147 7. Import’s share of GDP is about __________ percent. a. 5 b. 10 c. 15 d. 20 e. 40 Answer: c. Section: 14.2 8. U.S. import’s share of GDP is about __________ percent, while export’s share is about __________ percent. a. 10; 15 b. 15; 10 c. 5; 10 d. 15; 15 e. 20; 40 Answer: b. Section: 14.2 9. Which of the following country(ies) has (have) export and import shares that exceed 20 percent of their respective GDP? a. China b. Canada c. France d. Germany e. All of the above. Answer: e. Section: 14.2 10. Which of the following country(ies) has (have) export and import shares that exceed 20 percent of their respective GDP? a. Brazil b. Japan c. India d. Argentina e. None of the above. Answer: e. Section: 14.2 11. Prior to 1975, the United States had a. balanced trade. b. a trade deficit. c. a trade surplus. d. a balanced budget. e. zero rates of inflation. Answer: c. Section: 14.2 12. Worldwide, the trade balance must be a. unsure. b. negative. c. positive. d. zero. e. dependent on the country. Answer: d. Section: 14.2 13. Which of the following had a trade surplus in 2000? a. France b. Japan c. the United States d. the United Kingdom e. a and b. Answer: b.
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Chapter 14--MacroTB - CHAPTER 14 International Trade...

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