Chapter 8

Question 1

Statement one the euro has largely replace the dollar in international trade statement to every European nation except Russia and Yugoslavia are members of the European nation.

Answer 1

Both statements are false

Question 2

Between 1990 and 2007 our trade deficit

Answer 2

More than quadrupled

Question 3

We run a trade,,,,, on goods and a trade,,,,, on services.

Answer 3

Deficit, surplus

Question 4

If the US imports of goods and services exceeds exports

Answer 4

None of the choices are true

Question 5

Net exports is a negative figure whenever

Answer 5

A nations imports of goods and services exceeds its exports

Question 6

The NAFTA agreement affects our trade with

Answer 6

North America

Question 7

Statement one: most of the economist support the concept of free trade. Statement two: the NAFTA and get agreements place substantial barriers in the way of free trade.

Answer 7

Statement one is true and statement two false

Question 8

Since the early 1990s our trade deficit has

Answer 8

Risen substantially

Question 9

Which of the statements is true? C plus I plus G plus X has always been higher then see plus I plus G. Or C plus I plus G has always been higher than C plus I plus G plus X.or see plus I plus G has always been equal to see plus I plus G plus X. Or none of these statements are true

Answer 9

None of these statements are true

Question 10

The members of NAFTA include

Answer 10

The United States Canada and Mexico

Question 11

The basis for international trade is that

Answer 11

A nation can import a particular good or service at a lower cost than if it were domestically produced

Question 12

Net exports are

Answer 12

The smallest component of GDP

Question 13

Adam Smith believed that

Answer 13

What makes sense in the context of a private family’s economic endeavors also makes sense in those of a nation

Question 14

GDP equals C plus I plus G plus X. Since the 1970s if X were not included in our GDP would be

Answer 14

Higher

Question 15

Which statement is true

Answer 15

X in has always been positive from 1900 until the 1970s

Question 16

The population and GDP of the European Union is,,,,,,,,,,,,,,, that of United States.

Answer 16

Greater than

Question 17

Since the end of World War II in 1945 the world has experienced in an accelerated movement towards

Answer 17

Free-trade

Question 18

The most favored nation clause of the WTO agreement stipulates that

Answer 18

All member nations must offer all other member countries the same trade concessions

Question 19

If yesterday’s dollar traded for 100 Japanese yen and today ¥101 for the dollar we would say that

Answer 19

Both of the choices

Question 20

Which best describes the American economy?

Answer 20

It is a highly specialized economy.

Question 21

Which of the components of the GDP is most likely to be negative?

Answer 21

Net exports

Question 22

Net exports is defined as

Answer 22

Exports minus imports

Question 23

Which of the statements would best describe the situation of the American economy?

Answer 23

We are much more dependent on foreign trade them we were 30 years ago.

Question 24

Mexico sends the United States over,,,,,,,, percent of its exports.

Answer 24

80%

Question 25

The scent of our imports and exports is equal to about,,,,,,,,,,, percent of our GDP.

Answer 25

30