Question 1

If a country has $2.4 billion of net exports and purchases $4.8 billion of goods and services from foreign countries,then it has

Accepted Answer

The answer of If a country has $2.4 billion of...

Question 2

Which of the following both raise net exports?

Accepted Answer

When exports rise and imports fall, it means that a country is selling more goods and services to other countries while buying fewer goods and services from them. This leads to an increase in net exports, which is the difference between exports and imports.

Question 3

A country's trade balance

Accepted Answer

A country's trade balance is the difference between its exports and imports. If exports are greater than imports, the trade balance will be positive. Therefore, option C is correct. Option A cannot be correct because many countries have trade deficits, which means that their imports exceed their exports. Option B cannot be correct because a trade surplus is not necessary for a positive trade balance, as explained in option C. Option D is incorrect because it suggests that a positive trade balance can only occur if imports are greater than exports, which is not the case.

Question 4

If the U.S.has exports of $1.5 trillion and imports of $2.2 trillion,then the U.S.

Accepted Answer

A trade deficit occurs when a country imports more than it exports. In this case, the U.S. has imports of $2.2 trillion which is greater than exports of $1.5 trillion, indicating a trade deficit. Choice C correctly identifies this.

Question 5

If the United States had negative net exports last year,then it

Accepted Answer

Negative net exports means that the value of a country's imports exceeded the value of its exports. Therefore, the United States bought more abroad than it sold abroad and had a trade deficit.

Question 6

Oceania buys $40 of wine from Escudia and Escudia buys $100 of wool from Oceania.Supposing this is the only trade that these countries do.What are the net exports of Oceania and Escudia in that order?

Accepted Answer

Net exports are calculated by subtracting imports from exports. Oceania exported $40 of wine to Escudia and imported $100 of wool, resulting in a net export of -$60. Escudia exported $100 of wool to Oceania and imported $40 of wine, resulting in a net export of $60. Therefore, the correct answer is C, with Oceania having a net export of -$60 and Escudia having a net export of $60.

Question 7

If Saudi Arabia had positive net exports last year,then it

Accepted Answer

Positive net exports indicate that Saudi Arabia sold more goods and services to other countries than it imported from them, resulting in a trade surplus.

Question 8

If Germany purchased more abroad than it sold abroad last year,then it had

Accepted Answer

If Germany purchased more abroad than it sold abroad, it means that it had negative net exports. Negative net exports imply that a country's imports exceeded its exports, resulting in a trade deficit. Therefore, the correct choice is option D.

Question 9

If a country has net exports of $9 billion and sold $50 billion of goods and services abroad,then it has

Accepted Answer

Net exports = Exports - Imports
Therefore, Imports = Exports - Net exports
Substituting the given values, Imports = $50 billion - $9 billion = $41 billion
So, the country has $50 billion of exports and $41 billion of imports. This is represented by choice D.

Question 10

One year a country has positive net exports.The next year it still has positive but larger net exports

Accepted Answer

Positive net exports indicate a trade surplus, which means the country exported more than it imported. If the next year the country's net exports increased, it means the country exported even more and imported even less, resulting in a larger trade surplus. Therefore, the correct answer is B, its trade surplus rose.

Question 11

One year a country has negative net exports.The next year it still has negative net exports and imports have risen more than exports.

Accepted Answer

Since the country has negative net exports in both years, it means that it is already in a trade deficit. The fact that imports have risen more than exports in the next year means that the trade deficit has increased, hence the correct answer is D, its trade deficit rose.

Question 12

Suppose that a country imports $75 million of goods and services and exports $100 million of goods and services.What is the value of net exports?

Accepted Answer

The answer of Suppose that a country imports $75 million...

Question 13

A country sells more to foreign countries than it buys from them.It has

Accepted Answer

A trade surplus occurs when a country exports (sells) more goods and services than it imports (buys), resulting in a positive net export balance. Therefore, choice A is the correct answer.

Question 14

A country purchases $3 billion of foreign-produced goods and services and sells $2 billion dollars of domestically produced goods and services to foreign countries.It has

Accepted Answer

To calculate the trade balance, we need to subtract imports from exports. In this case, exports are $2 billion and imports are $3 billion, resulting in a trade deficit of $1 billion.

Question 15

If U.S.exports are $150 billion and U.S.imports are $100 billion,which of the following is correct?

Accepted Answer

To calculate the trade balance, we subtract imports from exports: $150 billion - $100 billion = $50 billion trade surplus. Therefore, choice B is correct.

Question 16

If U.S.exports are $300 billion and U.S.imports total $350 billion,which of the following is correct?

Accepted Answer

A trade surplus occurs when a country's exports exceed its imports. A trade deficit occurs when a country's imports exceed its exports. In this case, U.S. imports exceed U.S. exports, meaning the U.S. has a trade deficit. The difference between the two values is $50 billion. Therefore, the correct answer is D.

Question 17

The value of Peru's exports minus the value of Peru's imports is called

Accepted Answer

The value of Peru's exports minus the value of Peru's imports is referred to as Peru's net exports, which represents the country's overall trade balance. A positive net exports value indicates that Peru is exporting more than it is importing and has a trade surplus, while a negative value indicates a trade deficit, with Peru importing more than it exports. Choices A and B refer to different forms of foreign investments and are not related to trade balance, while choice D is just the opposite of net exports and is not commonly used.

Question 18

Table 31-1
 
-Refer to Table 31-1.What are Argentina's exports?

Accepted Answer

In Table 31-1, under the "Exports" column, the value for Argentina is listed as $35 billion. Therefore, the correct answer is B.

Question 19

Juan lives in Ecuador and purchases a motorcycle manufactured in the United States.The motorcycle is

Accepted Answer

The motorcycle was manufactured in the United States and purchased by Juan in Ecuador, so it is considered a U.S. export to Ecuador and an Ecuadorian import from the United States.

Question 20

Net exports of a country are the value of

Accepted Answer

Net exports are calculated by subtracting the value of goods and services imported from the value of goods and services exported. Therefore, the correct answer is B, goods and services exported minus the value of goods and services imported.

Quiz 31: Open-Economy Macroeconomics: Basic Concepts