Question 1

Table 31-1 
-Refer to Table 31-1. What are Bolivia's imports?

Accepted Answer

The answer of Table 31-1 
-Refer to Table 31-1. What...

Question 2

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

Accepted Answer

Negative net exports indicate a trade deficit, which means Germany purchased more goods and services abroad than it sold abroad.

Question 3

A Texas ranch sells beef to a U.S. company that sells it to a grocery chain in Japan. These sales

Accepted Answer

The answer of A Texas ranch sells beef to a...

Question 4

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

Accepted Answer

Trade surplus is calculated by subtracting imports from exports. Therefore, $150 billion - $100 billion = $50 billion. Hence, the correct option is B) The U.S. has a trade surplus of $50 billion.

Question 5

Paine Pharmaceuticals produces medicines in the U.S. Its overseas sales

Accepted Answer

Paine Pharmaceuticals is producing goods in the U.S. and then exporting them overseas. Therefore, these sales are an export of the U.S. and will increase U.S. net exports.

Question 6

Oceania buys $100 of wine from Escudia and Escudia buys $80 of wool from Oceania. Suppose this is the only trade that these countries do. What are the net exports of Oceania and Escudia, in that order?

Accepted Answer

The answer of Oceania buys $100 of wine from Escudia...

Question 7

Bob traps lobsters in Maine and sells them to a restaurant in Mexico. Other things the same, these sales

Accepted Answer

When Bob sells lobsters to a restaurant in Mexico, it increases U.S. exports (since he's selling goods to a foreign country) and decreases Mexican imports (since they're buying goods from a foreign country). Therefore, U.S. net exports increase (exports-imports) and Mexican net exports decrease (imports-exports).

Question 8

Peru has exports of $31.5 million and imports of $30 million. Peru

Accepted Answer

Peru sells more overseas than it buys from overseas, indicating it has a trade surplus. The difference between exports and imports is $1.5 million.

Question 9

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

Accepted Answer

Bolivia's exports in 2018 were $35 billion, as shown in the table under the "Exports (2018)" column. The other options listed do not match the data in the table.

Question 10

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 11

If a country has net exports of $8 billion and sold $40 billion of goods and services abroad, then it has

Accepted Answer

Net exports are calculated by subtracting imports from exports. So, if the country sold $40 billion of goods and services abroad and has net exports of $8 billion, then its imports would be $32 billion ($40 billion - $8 billion). Therefore, the correct answer is D: $40 billion of exports and $32 billion of imports.

Question 12

Suppose that a country imports $90 million worth of goods and services and exports $80 million worth of goods and services. What is the value of net exports?

Accepted Answer

Net exports are calculated as exports minus imports. In this case, the value of net exports is $80 million (exports) minus $90 million (imports), which equals -$10 million. A negative value indicates a trade deficit, which means that the country is importing more than it is exporting.

Question 13

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

The country has exports of $2 billion and imports of $3 billion, resulting in a trade deficit of $1 billion.

Question 14

A firm in the United Kingdom hires a firm in the U.S. to train its managers. By itself this transaction

Accepted Answer

The answer of A firm in the United Kingdom hires...

Question 15

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

Accepted Answer

The answer of Table 31-1 
-Refer to Table 31-1. What...

Question 16

Egypt has exports of $500 million and imports of $750 million. Egypt

Accepted Answer

Egypt imports more than it exports, so it has a trade deficit.

Question 17

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

Accepted Answer

The U.S. buys more from overseas than it sells overseas, resulting in a trade deficit.

Question 18

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

Accepted Answer

The trade balance is calculated as exports minus imports. Therefore, the U.S. has a trade deficit of $50 billion ($350 billion imports minus $300 billion exports).

Question 19

A U.S. firm sells diesel locomotives to a German railroad. Other things the same, this sale

Accepted Answer

This sale increases U.S. net exports because a product has been exported from the U.S. to Germany. At the same time, this sale decreases German net exports because a product has been imported to Germany from the U.S.

Question 20

If Norway sold more goods and services abroad than it purchased from abroad, then it had

Accepted Answer

Positive net exports indicate that a country sold more goods and services abroad than it purchased from abroad, resulting in a trade surplus.

Quiz 31: Open-Economy Macroeconomics: Basic Concepts

Table 31-1 -Refer to Table 31-1. What are Bolivia's imports?