EC340 practice_questions_for_exam__1

EC340 practice_questions_for_exam__1 - Practice Questions...

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Practice Questions for Exam #1 1. When a foreign resident purchases a good or service from someone in the United States, the transaction is: A) a U.S. export. B) a U.S. import. C) a bilateral exchange. D) a compensating differential. 2. Which of the following entries are considered to be U.S. exports of services? A) Japanese buying soybeans from the United States B) Chinese selling iPods to the United States C) Mexican tourists visiting the Grand Canyon D) French wine sold to the United States 3. An American tourist buys a ticket to an opera in Paris. How does the U.S. government classify this transaction? A) a goods import B) a service export C) a service import D) a goods export 4. A Chinese student pays tuition at a U.S. university. How does the Chinese government classify this transaction? A) a goods import B) a service export C) a service import D) a goods export 5. If the value of a nation's imports is more than the value of its exports, then the nation is experiencing: A) a trade deficit. B) a trade surplus. C) balanced trade. D) the trade balance. Page 1
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6. Recent bilateral trade figures alarm politicians who worry about China's growing trade imbalance with the United States. What do the authors of your textbook say? A) The real figures are even more shocking. B) It is not as bad as the numbers appear because China imports from its other trading partners a large percentage of the value of the export. C) It depends on how you count imports and exports and on which currency is used. D) Irresponsible governments, corruption, and greedy corporations are responsible for the widening gap. 7. Why do larger countries tend to have lower ratios of international trade to GDP than smaller countries? A) Larger countries tend to have more trade between states or provinces within their borders than smaller countries. B) Larger countries tend to have higher tariffs than smaller countries. C) Larger countries tend to trade with other larger countries. D) Larger countries tend to have larger trade deficits than smaller countries. 8. Economists call factors that influence (reduce) the total volume of goods and services sold across international borders: A) business environment. B) trade barriers. C) trade conditions. D) the ratio of total trade to GDP. 9. The “first golden age” of trade was: A) the period from 1890 to 1913, when tariffs were increased between countries. B) the period from 1890 to 1913, when steamships and railroads increased trade. C) the period between 1919 and 1935. D) the inter-war period. 10. After 1945, world trade:
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This note was uploaded on 02/09/2012 for the course ECN 340 taught by Professor Luchang during the Fall '11 term at Michigan State University.

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EC340 practice_questions_for_exam__1 - Practice Questions...

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