Question 1

Statement I: The U.S.trade deficit has gone up with Mexico since the passage of NAFTA,but we are running a trade surplus with Canada.
Statement II: There is little evidence that the NAFTA agreement has cost American's more than 200,000 jobs.

Accepted Answer

The answer of Statement I: The U.S.trade deficit has gone...

Question 2

Net exports are negative when

Accepted Answer

Net exports represent the difference between a nation's exports and imports. When a nation's imports exceed its exports, net exports are negative. Therefore, choice D (a nation's imports of goods and services exceeds its exports) is the correct answer.

Question 3

Which is the most accurate statement?

Accepted Answer

GATT (General Agreement on Tariffs and Trade) negotiations did address intellectual property rights for the first time in the 1990s after several rounds of negotiations since its establishment in 1947. Option A is incorrect as the WTO (World Trade Organization) was established in 1995, not a few years after World War II. Option C is incorrect as GATT was established in 1947, not in the 1990s. Option D is incorrect as GATT negotiations do affect the trade of agricultural commodities, as it was a major area of negotiation during the Uruguay Round in the late 1980s and early 1990s.

Question 4

Before the ________ the American export-import sector was relatively small.

Accepted Answer

The answer of Before the ________ the American export-import sector...

Question 5

Statement I: Our trade deficit is higher than it was five years ago.
Statement II: Until the mid-1970s,our imports and exports were each less than 10 percent of our domestic goods output.

Accepted Answer

The answer of Statement I: Our trade deficit is higher...

Question 6

Since the GATT agreement in 1947,the world has experienced

Accepted Answer

While there has been a reduction of trade barriers among nations since the inception of GATT (which later became the WTO in 1995), it is not true that there has been complete elimination of tariffs and trade barriers or that there are no unfair trading practices among nations. Therefore, option A and B are incorrect. Option D is incorrect because it includes options A and B which are not true. Option C is the best choice as it accurately reflects the progress made since 1947.

Question 7

Statement I: The United States has a much more self-sufficient economy than those of Western Europe.
Statement II: The European Union,as a free trade association,can trace its origins back to the 1950s.

Accepted Answer

Statement I is true as the United States has a larger domestic market and a more diversified economy, making it less reliant on trade than Western Europe. Statement II is also true as the European Union was established as a free trade association with the Treaty of Rome in 1957.

Question 8

Which statement is FALSE about the European Union?

Accepted Answer

While most EU member countries have adopted the euro as their currency, there are a few that have not (such as Sweden). Additionally, not all 27 nations are currently in the EU (e.g. United Kingdom has left).

Question 9

Which of the following European Union (EU)nations has not adopted the euro?

Accepted Answer

Great Britain has not adopted the euro as its currency. They instead use the pound sterling.

Question 10

The U.S.negative balance of trade was almost ________ in 2008.

Accepted Answer

The answer of The U.S.negative balance of trade was almost...

Question 11

If total imports exceed total exports,other things being constant,then

Accepted Answer

When total imports exceed total exports, it means that a country is buying more goods and services from other countries than it is selling to other countries. This leads to a negative balance of trade, which is also known as a trade deficit. As a result, net exports are negative.

Question 12

GDP = C + I + G + Xn.From the outbreak of World War I (1914)until the 1970s,if Xn were not included our GDP would be

Accepted Answer

Before the 1970s, the US had a trade surplus, meaning exports were greater than imports (Xn>0). If Xn were not included in the GDP calculation, it would mean only consumption, investment, and government spending were counted. This would result in a lower GDP because the contribution from net exports (Xn) would be excluded.

Question 13

Statement I: College sweatshirts are usually made in sweatshop factories in low-wage countries.
Statement II: Critics of the IMF argue that it champions market supremacy with ideological fervor.

Accepted Answer

Both statements are true. Statement I is supported by numerous reports of college apparel companies' use of sweatshop labor, particularly in countries with low wages and weak labor protections. Statement II reflects criticism of the International Monetary Fund (IMF) as an institution that promotes neoliberal economic policies and market-driven solutions, often at the expense of social protections and public services. The IMF has been accused of imposing harsh austerity measures on developing countries, leading to economic instability and social inequality.

Question 14

Statement I: Since the end of World War II in 1945,the world has seen trade barriers fall significantly. Statement II: The United States ran a trade surplus in merchandise for most of the 20^th century.

Accepted Answer

The answer of Statement I: Since the end of World...

Question 15

Net exports are positive when

Accepted Answer

Net exports are the difference between a country's exports of goods and services and its imports of goods and services. If exports exceed imports, then net exports are positive. Therefore, choice A is the correct answer.

Question 16

Statement I: The population and GDP of the European Union is greater than that of the United States.
Statement II: The European Union has NOT attained as high of a degree of economic integration as NAFTA.

Accepted Answer

According to current data, Statement I is true as the population of the European Union is around 446 million, whereas the population of the United States is around 331 million, and the GDP of the EU is around $18.8 trillion, whereas the GDP of the United States is around $21.4 trillion. However, Statement II is false as the European Union has attained a higher degree of economic integration than NAFTA. The EU has a single market, common currency, and free movement of goods, services, capital, and labor among member countries, while NAFTA only has a free trade agreement between three North American countries.

Question 17

Statement I: Since the mid 1970s our balance of trade has been negative.
Statement II: The United States foreign trade sector has more than doubled over the last 30 years.

Accepted Answer

Both statements are true. The United States has experienced a negative balance of trade since the mid-1970s, meaning it imports more than it exports. Additionally, the foreign trade sector in the United States has indeed more than doubled over the last 30 years, reflecting significant growth in international trade activities.

Question 18

Which statement is true?

Accepted Answer

The answer of Which statement is true?
...

Question 19

What was the most important advantage to the EU countries that adopted the EURO as their official currency?

Accepted Answer

The introduction of the euro has eased trade and commerce among the nations that adopted the euro, as it eliminated the need for exchanging currencies and reduced transaction costs. This has helped to create a more integrated European market and lead to economic growth. While the other options may have some advantages, they do not reflect the most important advantage of adopting the euro as a common currency.

Question 20

Each of the following is a characteristic of the European Union EXCEPT that

Accepted Answer

While the European Union has many characteristics, including the free movement of workers, adoption of the euro, and free movement of goods, its population and GDP are not smaller than those of the United States. As of 2021, the European Union had a population of over 447 million and a GDP of approximately $16.3 trillion, making it one of the largest economies in the world.

Quiz 8: The Export-Import Sector

Statement I: The U.S.trade deficit has gone up with Mexico since the passage of NAFTA,but we are running a trade surplus with Canada. Statement II: There is little evidence that the NAFTA agreement has cost American's more than 200,000 jobs.

Net exports are negative when

Which is the most accurate statement?

Before the ________ the American export-import sector was relatively small.

Statement I: Our trade deficit is higher than it was five years ago. Statement II: Until the mid-1970s,our imports and exports were each less than 10 percent of our domestic goods output.

Since the GATT agreement in 1947,the world has experienced

Statement I: The United States has a much more self-sufficient economy than those of Western Europe. Statement II: The European Union,as a free trade association,can trace its origins back to the 1950s.

Which statement is FALSE about the European Union?

Which of the following European Union (EU) nations has not adopted the euro?

The U.S.negative balance of trade was almost ________ in 2008.

If total imports exceed total exports,other things being constant,then

GDP = C + I + G + Xn.From the outbreak of World War I (1914) until the 1970s,if Xn were not included our GDP would be

Statement I: College sweatshirts are usually made in sweatshop factories in low-wage countries. Statement II: Critics of the IMF argue that it champions market supremacy with ideological fervor.

Statement I: Since the end of World War II in 1945,the world has seen trade barriers fall significantly. Statement II: The United States ran a trade surplus in merchandise for most of the 20^th century.

Net exports are positive when

Statement I: The population and GDP of the European Union is greater than that of the United States. Statement II: The European Union has NOT attained as high of a degree of economic integration as NAFTA.

Statement I: Since the mid 1970s our balance of trade has been negative. Statement II: The United States foreign trade sector has more than doubled over the last 30 years.

Which statement is true?

What was the most important advantage to the EU countries that adopted the EURO as their official currency?

Each of the following is a characteristic of the European Union EXCEPT that

Quiz 8: The Export-Import Sector

Statement I: The U.S.trade deficit has gone up with Mexico since the passage of NAFTA,but we are running a trade surplus with Canada. Statement II: There is little evidence that the NAFTA agreement has cost American's more than 200,000 jobs.

Net exports are negative when

Which is the most accurate statement?

Before the ________ the American export-import sector was relatively small.

Statement I: Our trade deficit is higher than it was five years ago. Statement II: Until the mid-1970s,our imports and exports were each less than 10 percent of our domestic goods output.

Since the GATT agreement in 1947,the world has experienced

Statement I: The United States has a much more self-sufficient economy than those of Western Europe. Statement II: The European Union,as a free trade association,can trace its origins back to the 1950s.

Which statement is FALSE about the European Union?

Which of the following European Union (EU) nations has not adopted the euro?

The U.S.negative balance of trade was almost ________ in 2008.

If total imports exceed total exports,other things being constant,then

GDP = C + I + G + Xn.From the outbreak of World War I (1914) until the 1970s,if Xn were not included our GDP would be

Statement I: College sweatshirts are usually made in sweatshop factories in low-wage countries. Statement II: Critics of the IMF argue that it champions market supremacy with ideological fervor.

Statement I: Since the end of World War II in 1945,the world has seen trade barriers fall significantly. Statement II: The United States ran a trade surplus in merchandise for most of the 20th century.

Net exports are positive when

Statement I: The population and GDP of the European Union is greater than that of the United States. Statement II: The European Union has NOT attained as high of a degree of economic integration as NAFTA.

Statement I: Since the mid 1970s our balance of trade has been negative. Statement II: The United States foreign trade sector has more than doubled over the last 30 years.

Which statement is true?

What was the most important advantage to the EU countries that adopted the EURO as their official currency?

Each of the following is a characteristic of the European Union EXCEPT that

Statement I: Since the end of World War II in 1945,the world has seen trade barriers fall significantly. Statement II: The United States ran a trade surplus in merchandise for most of the 20^th century.