GBM 381 Week 3 Quiz

Question 1

GBM 381 Week 3 Quiz

1. If a US firm exports $7,000 of goods which are to be paid for within six months, using a double-entry bookkeeping system, what entries should be made in the US balance of payments?

Goods export - credit of $7,000; Capital outflow - debit of $7,000
Accounts Receivable - debit of $7,000; Inventory - credit of $7,000
Goods export - debit of $7,000; Capital outflow - credit of $7,000
Accounts Receivable - credit of $7,000; Inventory - debit of $7,000

2. Which of the following are included in the current account?

Currently produced goods and services
Income on foreign investments
Unilateral transfers
All of the above

3. Which of the following is an example of a deficit in the balance of payments?

The excess of debits over credits in the current and capital accounts
The excess of credits over debits in the current account
The excess of credits over debits in the capital account
Both b & c

4. ____________ have historically been the most important and most used type of trade restriction.

Quotas
Domestic content requirements
Import tariffs
Export tariffs

5. A(n) __________ is a tax or duty levied on the traded commodity as it enters a nation.

ad valorem tariff
compound tariff
optimum tariff
import tariff

6. The difference between what consumers would be willing to pay for each unit of commodity and what they actually pay for that unit is called ____________.

producer surplus
consumer surplus
reservation price
import tariff

7. If Japan is accused of dumping televisi

Answer 1

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