Question 1

Which of the following statements is true?

Accepted Answer

According to the statement, imports and exports account for over one-half of the GDP of Belgium. The other statements are not true. Japan is not more dependent on foreign trade than the United States, as the US is one of the largest trading nations in the world. France is not the leading exporting country, with China being the largest exporter. The statement about the cost of labor and US agricultural exports is also not true, as the US is a major exporter of wheat, corn, and soybeans.

Question 2

Caterpillar's sales were severely affected by the decline in the U.S.housing market that began in 2006.Sales in the United States declined by ________ between 2006 and 2008,and export sales ________ during the same time period.

Accepted Answer

A

Question 3

Which of the following statements is true?

Accepted Answer

According to data from the World Bank, most of the leading exporters are indeed high-income countries. In 2019, the top five exporters in the world were China, the United States, Germany, Japan, and the Netherlands. All of these countries are considered high-income countries by the World Bank. Option A is not completely true, as imports can also create jobs in the domestic economy. Option B is not true either, as China's wheat and rice exports are much lower than the percentages stated. Option D is not true, as different sectors of the U.S. economy are affected differently by international trade.

Question 4

Goods and services bought domestically but produced in other countries are referred to as

Accepted Answer

Goods and services that are purchased domestically but are produced in other countries are referred to as imports. This is because they are being brought into the country from outside its borders.

Question 5

Which of the following statements about the importance of trade to the U.S.economy is true?

Accepted Answer

The answer of Which of the following statements about the...

Question 6

How have U.S.imports and exports,as a fraction of GDP,changed from 1950 to the present?

Accepted Answer

The answer of How have U.S.imports and exports,as a fraction...

Question 7

In the 1930s,the United States charged an average tariff rate ________.Today,the rate is ________.

Accepted Answer

The answer of In the 1930s,the United States charged an...

Question 8

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is

Accepted Answer

The purchase is a U.S. import because Roxanne, a U.S. citizen, is bringing the dress into the country. It is also an Italian export because the dress was made in Milan and is leaving the country.

Question 9

A tariff is a tax imposed by a government on

Accepted Answer

A tariff is a tax that is imposed by a government on imported goods. It is meant to make those goods more expensive in the domestic market, which can help to protect domestic industries from foreign competition. Tariffs can be set at different levels, and may be applied to specific goods or to a range of goods from a particular country.

Question 10

Twenty-seven countries in Europe have eliminated all tariffs with each other.This group of countries is known as the

Accepted Answer

The European Union is a political and economic union of 27 European countries that have eliminated all tariffs and have achieved a single market with free movement of goods, services, capital, and people.

Question 11

NAFTA refers to a 1994 agreement that eliminated most tariffs among which countries?

Accepted Answer

NAFTA stands for North American Free Trade Agreement and included the United States, Canada, and Mexico. The other options, A, B, and D, include the United Kingdom or Cuba, which were not part of the agreement.

Question 12

In 2010,________ of Caterpillar's sales were outside the United States.

Accepted Answer

According to the statement, "more than two-thirds" of Caterpillar's sales were outside the United States in 2010.

Question 13

In the United States,imports and exports make up more than half of GDP.

Accepted Answer

The answer of In the United States,imports and exports make...

Question 14

Caterpillar's sales are now greater outside the United States than inside the United States.

Accepted Answer

Caterpillar's financial report for 2020 shows that 55% of their total sales come from outside the United States.

Question 15

The intention of the "Buy American" provision in the 2009 stimulus bill was to

Accepted Answer

The "Buy American" provision aimed to increase jobs in the United States by requiring that materials used in construction projects funded by the stimulus bill be manufactured in the United States. This was done to boost the domestic economy and support American industries.

Question 16

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

Accepted Answer

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because they believe the restrictions will protect their jobs. They fear that foreign competition will lead to job loss or wage cuts, and therefore support government policies to limit imports and protect their employment.

Question 17

U.S.firms that sell products in foreign markets protested the "Buy American" provision in the 2009 stimulus bill,arguing that if the United States restricted imports from foreign firms,

Accepted Answer

If the United States restricted imports, foreign countries would likely retaliate by limiting U.S. exports, which could hurt U.S. businesses that rely on selling goods overseas. This could ultimately harm the U.S. economy as a whole.

Question 18

Today,the United States charged an average tariff rate

Accepted Answer

According to the World Bank, the average tariff rate for the United States in 2018 was 1.7%, which is less than 2%. Therefore, option C is the correct answer. Option A is incorrect because the average tariff rate in 1930 was significantly higher than it is now. Option B is incorrect because there are other high-income countries such as Switzerland and Japan that have higher tariff rates. Option D is incorrect because 50% is an extremely high tariff rate, and no major trading partner of the United States currently charges such a high rate.

Question 19

Exports are domestically produced goods and services

Accepted Answer

Exports refer to goods and services that are produced within a country and then sold to other countries. So, option A is the correct choice. The other options are not relevant to the definition of exports.

Question 20

Absolute advantage is

Accepted Answer

Absolute advantage is the ability to produce more of a good or service than competitors when using the same amount of resources. This means that the country or entity with an absolute advantage can produce a larger quantity of a good or service with the same amount of inputs or resources, such as labor, capital, or land.

Quiz 19: Comparative Advantage,international Trade,and Exchange Rates

Which of the following statements is true?

Caterpillar's sales were severely affected by the decline in the U.S.housing market that began in 2006.Sales in the United States declined by between 2006 and 2008,and export sales during the same time period.

Which of the following statements is true?

Goods and services bought domestically but produced in other countries are referred to as

Which of the following statements about the importance of trade to the U.S.economy is true?

How have U.S.imports and exports,as a fraction of GDP,changed from 1950 to the present?

In the 1930s,the United States charged an average tariff rate .Today,the rate is .

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is

A tariff is a tax imposed by a government on

Twenty-seven countries in Europe have eliminated all tariffs with each other.This group of countries is known as the

NAFTA refers to a 1994 agreement that eliminated most tariffs among which countries?

In 2010,________ of Caterpillar's sales were outside the United States.

In the United States,imports and exports make up more than half of GDP.

Caterpillar's sales are now greater outside the United States than inside the United States.

The intention of the "Buy American" provision in the 2009 stimulus bill was to

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

U.S.firms that sell products in foreign markets protested the "Buy American" provision in the 2009 stimulus bill,arguing that if the United States restricted imports from foreign firms,

Today,the United States charged an average tariff rate

Exports are domestically produced goods and services

Absolute advantage is