SOL_CHAP_31 - SOL CHAP 31 Open-Economy Macroeconomics:...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
SOL CHAP 31 Open-Economy Macroeconomics: Basic Concepts PART 1: Multiple choices: 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. ANS: A PTS: 1 DIF: 1 REF: 31-1 TOP: International trade MSC: Definitional 2. Foreign-produced goods and services that are sold domestically are called a.imports. b.exports. c.net imports. d.net exports. ANS: A PTS: 1 DIF: 1 REF: 31-1 TOP: Imports MSC: Definitional 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. ANS: B PTS: 1 DIF: 1 REF: 31-1 TOP: Net exports MSC: Definitional 4. 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.a 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. ANS: C PTS: 1 DIF: 1 REF: 31-1 TOP: Imports | Exports MSC: Definitional 5. Sonya, a citizen of Denmark, produces boots and shoes that she sells to department stores in the United States. Other things the same, these sales a.increase U.S. net exports and have no effect on Danish net exports. b.decrease U.S. net exports and have no effect on Danish net exports. c.increase U.S. net exports and decrease Danish net exports. d.decrease U.S. net exports and increase Danish net exports. ANS: D PTS: 1 DIF: 1 REF: 31-1 TOP: Net exports MSC: Definitional
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6. You buy a new car built in Sweden. Other things the same, your purchase by itself a.raises both U.S. exports and U.S. net exports. b.raises U.S. exports and lowers U.S. net exports. c.raises both U.S. imports and U.S. net exports. d.raises U.S. imports and lowers U.S. net exports. ANS: D PTS: 1 DIF: 1 REF: 31-1 TOP: Net exports MSC: Definitional 7. A country's trade balance a.must be zero. b.must be greater than zero. c.is greater than zero only if exports are greater than imports. d.is greater than zero only if imports are greater than exports. ANS: C PTS: 1 DIF: 1 REF: 31-1 TOP: Net exports MSC: Applicative 8. If the United States had negative net exports, it a.sold more abroad than it purchased abroad and has a trade surplus. b.sold more abroad than it purchased abroad and has a trade deficit. c.bought more abroad than it sold abroad and had a trade surplus. d.bought more abroad than it sold abroad and had a trade deficit. ANS: D
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

SOL_CHAP_31 - SOL CHAP 31 Open-Economy Macroeconomics:...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online