Question :
8.4 Trade Between Countries
1) If a nation a net importer : 1377414
8.4 Trade Between Countries
1) If a nation is a net importer it means that the:
A) nation only imports goods and services and does not export any good.
B) nation only imports those goods in which it has an absolute disadvantage.
C) nation’s imports are worth more than exports over a given period of time.
D) nation prohibits the import of goods and services that can be produced domestically.
The following table shows the value of exports and imports of four countries in 1990.
Country
Exports (billion dollars)
Imports (billion dollars)
A
23,000
21,000
B
15,000
17,000
C
26,000
30,000
D
12,000
11,000
2) Refer to the table above. Which of the following statements is true?
A) Country A is a net importer.
B) Country B is not a net importer.
C) Country C is a net importer.
D) Country D is a net importer.
3) Refer to the table above. Which of the following statements is true?
A) Country A and country C are net importers.
B) Country A and country D are net importers.
C) Country D and country C are net importers.
D) Country C is a net importer while country A is not.
4) Refer to the table above. Which of the following statements is true?
A) Country D is not a net importer.
B) Country A and country B are net importers.
C) Country C and country D are not net importers.
D) None of the four countries is a net importer.
5) Which of the following statements is true of the U.S.?
A) Trade between states in the U.S. values more than its international trade.
B) The U.S. has always been a net exporter of goods and services.
C) The U.S. exports more crude oil than it imports.
D) The level of imports of the U.S. has dramatically decreased since 1960.
6) Which of the following statements is true?
A) The growth rate of manufactured exports from the U.S. exceeded the growth rate of manufactured goods from China in the early 2000s.
B) The U.S. economy has failed to meet the demand for manufactured goods domestically.
C) U.S. exports are worth more than its imports.
D) The import of crude oil by the U.S. has been declining since 1960.
7) If a country is a price-taker for a good in the world market, ________.
A) its consumption and production decisions of the good plays a key role in determining world prices
B) its consumption and production decisions of the good does not affect the world prices
C) its demand for the good remains the same irrespective of changes in the world prices
D) it is the only exporter of the good in the world market
8) Fair trade products consist of goods:
A) that are usually imported from the developing nations.
B) the production of which involves child labor.
C) that are available in all countries across the globe.
D) that are exported only by the developed nations.
9) Free trade refers to the ability:
A) of the developing countries to make payments for imports of goods at the end of every year.
B) to trade without hindrance or encouragement from the government.
C) of the developed countries to set the world prices of most goods and services.
D) of the developed countries to provide financial aid to the developing nations.
10) A world price of a good:
A) is the lowest price for which the good is available in any country in the world.
B) is the price prevailing in the country with the highest production of the good.
C) is equal to lowest opportunity cost of producing the good in any country in the world.
D) is the prevailing price of the good on the global market.
