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Chapter 10 Random

Question 1 1 / 1 point

In the United States, which of the following government institutions would most likely provide economists with the basic data for merchandise trade?

Question options:

a)

Department of the Treasury

b)

Census Bureau

c)

Bureau of Economic Analysis

d)

Department of Commerce

Question 2 1 / 1 point

A country's current national savings and investment identity is expressed in algebraic terms as I – S – (T – G) = (M – X). Assume that the level of domestic savings rises, while the level of domestic investment and private saving remains unchanged. In this instance:

Question options:

a)

all of the above

b)

less foreign financial capital is required to meet investment needs.

c)

government policy will involve increasing private savings.

d)

the country's trade deficit will decline.

Question 3 0 / 1 point

When some countries increase their imports as a result of worldwide economic growth, other countries must be increasing their:

Question options:

a)

exports as demand in all countries substantially rises.

b)

trade deficits since all of their imports significantly rise.

c)

imports, but their trade deficits gradually decrease.

d)

trade surplus since all of their exports gradually rise.

Question 4 1 / 1 point

One of the following must be used as a starting point in order to perform an analysis that will determine what the connections between imbalances of trade in goods and services and the flows of international financial capital are. Which one is it?

Question options:

a)

sketch patterns of trade deficits

b)

sketch patterns of trade surpluses

c)

define the balance of trade

d)

define the level of trade

Question 5 1 / 1 point

A country's current national savings and investment identity is expressed in algebraic terms as X – M = S + (G – T) – I. In this instance:

Question options:

a)

the trade balance is determined by performance of certain sectors of the economy.

b)

there is no connection from domestic savings and investment to the trade balance.

c)

private and public domestic savings are higher than domestic investment.

d)

there is an inflow of capital investment from the rest of the world economy.

Question 6 0 / 1 point

Which of the following accurately reflects the pattern of the U.S. current account balance during the periods: 1991; the late 1990s through to the mid-2000s; and 2009 following the onset of recession?

Question options:

a)

surplus declined; larger deficit; tiny surplus

b)

larger deficit; surplus declined; tiny deficit

c)

larger deficit; tiny surplus; surplus declined

d)

tiny surplus; larger deficit; deficit declined

Question 7 1 / 1 point

Under what conditions would a nation be viewed as being neither a net borrower nor a net lender in the international economy?

Question options:

a)

it has a low level of trade and a large trade surplus

b)

its trade balance is zero

c)

it has a high level of trade and a moderate trade deficit

d)

it has a medium to high level of trade and a moderate trade surplus

Question 8 1 / 1 point

Goods and services produced in one country that are then sold in other countries are called ____________.

Question options:

a)

economic stimulants

b)

exports

c)

surplus items

d)

tradeable items

Question 9 1 / 1 point

The two main sources for the supply of capital in the U.S. economy are:

Question options:

a)

domestic savings from individuals and firms and inflows of financial capital from foreign investors.

b)

domestic private sector borrowing and inflows of financial capital from foreign investors.

c)

domestic savings from individuals and firms and government borrowing to make up a tax shortfall.

d)

private sector investment and government borrowing when spending is higher than tax revenues.

Question 10 1 / 1 point

With respect to the national saving and investment identity for any country, the quantity of _______________ at any given time by savings must ________________ for purposes of making investments.

Question options:

a)

financial capital supplied; equal the quantity of capital financial demanded

b)

foreign aid supplied; be lower than the quantity of domestic aid demanded

c)

foreign capital imports; less than the supply of domestic capital available

d)

foreign financial capital imports; equal to supply of domestic capital available

Question 11 1 / 1 point

The statement that GDP = C + I + G + X – M is an identity, because ________________________________.

Question options:

a)

trade surpluses can be either good or bad

b)

it is true according to the definition of GDP

c)

trade deficits can be either good or bad

d)

each trade is conducted on a voluntary basis

Question 12 1 / 1 point

One insight that can be obtained from the national saving and investment identity is that a nation’s balance of trade is determined by:

Question options:

a)

each nation’s own levels of domestic saving and domestic investment.

b)

all of the world government budgets and the overall global trade balance.

c)

foreign investment as a part of supply of financial capital.

d)

foreign investment as part of the demand for financial capital.

Question 13 0 / 1 point

Why would an analyst include, among other things, airplane parts, legal services and software, in an analysis of international economic trade?

Question options:

to determine the merchandise trade balance

to determine the balance of trade in services

to determine the current account balance

to determine the international flow of income

Question 14 0 / 1 point

A country's trade in manufactured goods diminished substantially, causing it to lose tax revenue and become a net borrower of foreign funds. For the next two decades, its government used the borrowed funds to upgrade the nation's waste-water treatment plants and to develop efficient rapid transit systems, creating substantial gainful employment for its workforce. Thereafter, the country began to quickly repay its past borrowing debt. Which of the following most strongly supported this country’s successful economic recovery?

Question options:

a)

global policies of low interest rates charged on funds borrowed by governments

b)

the creation of a trade deficit through more aggressive buying of imports

c)

ensuring borrowed funds were invested in long-term productive economic assets

d)

ensuring that larger borrowing reduced the need for more private savings

Chapter 19 Random

Question 15 1 / 1 point

High income countries are classified as having a GDP per capita that is greater than

Question options:

a)

$14,970

b)

$21,556

c)

$17,964

d)

$12,475

Question 16 0 / 1 point

In low and middle-income countries, workers who are not connected to a labor market are often unable to:

Question options:

a)

be "officially" employed.

b)

receive social benefits.

c)

specialize very much.

d)

collect old-age payments.

Question 17 0 / 1 point

A foreign aid donor has provided technology to help farmers in an undeveloped country to be more productive. If that country's government reacts to political pressure by urban food consumers by imposing price ceilings on farm products,

Question options:

a)

it will prove technologically disconnected countries need a full economic growth agenda.

b)

foreign investors will be more likely to provide funds for profitable activities.

c)

the farmers receiving the technology will still be unable to make a living.

d)

it will create a reasonably stable market-oriented macroeconomic climate.

Question 18 0 / 1 point

__________________________ address the problem of economic growth by continually striving for a more educated workforce that can create, invest in and apply new technologies.

Question options:

a)

Converging economies

b)

Command economies

c)

Technological leaders

d)

Technologically disconnected nations

Question 19 1 / 1 point

________________________ are the result of improvements in human capital, physical capital, and technology interacting in a _____________________.

Question options:

a)

Productivity improvements; market-driven economy

b)

High income economies; command economy

c)

Sustainable balances of trade; global economy

d)

Global economies; remarkably similar manner

Question 20 1 / 1 point

If an economy has a high level of trade in goods and services relative to GDP and its exports and imports are balanced, what value will the net flow of foreign investment be?

Question options:

a)

unchanged

b)

lower

c)

higher

d)

zero

Question 21 0 / 1 point

The U.S. trade deficit can disappear without raising legitimate concerns over disruption to the economy if:

Question options:

a)

all tariffs are doubled and import quotas are reduced by half.

b)

foreign investors sell their U.S. dollar investments and stop investing in the U.S. economy.

c)

domestic savings rates increases and foreign investment gradually decreases.

d)

the U.S. immediately ceases trade with all foreign countries.

Question 22 0 / 1 point

Many high-income nations are approaching a situation in which:

Question options:

a)

the elderly will soon form a much larger share of the population.

b)

they will intentionally aim for high rates of unemployment and inflation.

c)

the demands of the elderly will cause an unsustainable trade imbalance.

d)

they will intentionally aim for a low standard of living.

Question 23 0 / 1 point

In a number of middle to low-income economies around the world, governments may run an expansionary policy of huge and sustained budget deficits. This policy

Question options:

a)

counters inflation without regard to the shift to the left in aggregate demand.

b)

will shift aggregate demand to the right, so that output is beyond the potential GDP level.

c)

uses the central bank as a mechanism for making loans to politically favored firms.

d)

will begin a cycle of heavy reliance on economic growth from a few exported products.

Question 24 1 / 1 point

Factors like health, education, human rights, crime, personal safety, and cleanliness of environment all:

Question options:

a)

fail to capture the standard of living in a precise manner.

b)

fail to capture diversities that make up the global economy.

c)

have a large impact on the standard of living of a country.

d)

have a slight impact on the standard of living of a country.

Chapter 20 Random

Question 25 1 / 1 point

International trade currently involves about ______________ worth of goods and services thundering around the globe.

Question options:

a)

$2 trillion

b)

$20 trillion

c)

$200 billion

d)

$200 trillion