chapter28 practice questions

chapter28 practice questions - Chapter 28 Student: _ 1. A...

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Chapter 28 Student: ___________________________________________________________________________ 1. A country's trade balance equals: A. the value of tariffs less the number of quotas. B. the number of quotas less the value of tariffs. C. the value of exports minus the value of imports. D. the value of imports minus the value of exports. 2. A trade surplus occurs when: A. exports exceed imports. B. imports exceed exports. C. tariffs exceed quotas. D. quotas exceed tariffs. 3. Purchases or sales of real and financial assets across international borders are called: A. imports. B. exports. C. international capital flows. D. international trade. 4. Capital inflows are: A. purchases of domestic goods or services by foreigners. B. purchases of domestic assets by foreigners. C. purchases of foreign goods or services by domestic households or firms. D. purchases of foreign assets by domestic households or firms. 5. When a Peruvian buys a U.S. government bond, from the perspective of Peru, this is a(n): A. import. B. export. C. capital outflow. D. capital inflow. 1
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6. When an American buys stock in a French company, from the perspective of the United States this is a(n): A. import. B. export. C. capital outflow. D. capital inflow. 7. Net exports plus net capital inflows equal: A. net capital outflows. B. the international trade gap. C. zero. D. the trade balance. 8. When a U.S. oil company purchases oil from Saudi Arabia and the Saudi Arabian firm uses the proceeds from its sale of oil to the United States to buy U.S. government debt, U.S. _____ and there is a capital _____ to/ from the United States. A. imports increase; outflow B. imports decrease; inflow C. imports increase; inflow D. exports increase; outflow 9. If the United States has a $300 billion net capital inflow, then there must be a: A. trade surplus of $300 billion. B. trade deficit of $300 billion. C. trade surplus of $600 billion. D. net capital outflow of $600 billion. 10. In general, a nation can enjoy a higher standard of living by ______ than by being self-sufficient
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This note was uploaded on 02/04/2011 for the course ECON 1 taught by Professor Tang during the Spring '08 term at UCSD.

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chapter28 practice questions - Chapter 28 Student: _ 1. A...

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