If there is a surplus in a country's international trade, then
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e. the value of net exports is positive.
(Surplus means country exports more than it imports. Thus, net exports = exports - imports > 0)
If there is a surplus in a country's international trade, then a. macroeconomic equilibrium does not...
4. In 2008, Canada had net exports of $44.9 billion and sold $488.7 billion of goods and services abroad. Canada had A. $44.9 billion of exports and $443.8 billion of imports. B. $533.6 billion of exports and $488.7 billion of imports. C. $533.6 billion of imports and $488.7 billion of exports. D. $488.7 billion of imports and $443.8 billion of exports. E. $443.8 billion of imports and $488.7 billion of exports. 5. Which of the following factors affects a country's...
One of the central beliefs of mercantilism is that: A) Trade is a positive-sum game in which all countries benefit from trading with each other B) a country that has an absolute advantage in the production of all goods derives no benefits from international trade C) Potential world production is greater with unrestricted free trade than it is with restricted trade D) a country's government should intervene to achieve a surplus in the balance of trade E) a large volume...
Consider the Bolivian market for lemons.The following graph shows the domestic demand and domestic supply curves for lemons in Bolivia. Suppose Bolivia's government currently does not allow international trade in lemons.Use the black point (plus symbol) to indicate the equilibrium price of a ton of lemons and the equilibrium quantity of lemons in Bolivia in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use the purple...
1. International trade... a. Shifts a country's production possibility frontier outwards b. Shifts a country's production possibility frontier inwards c. Moves production within a country's production possibility frontier d. Enables a country to consume outside of its production possibility frontier 2. A customs union... a. Allows members to determine their own trade policies with each other b. Allows members to determine their own trade policies with non-member countries c. Has free trade among member countries but common trade policies with...
for mobile factors, for fixed factors used to 33) In the specific factors model, the effects of trade on welfare are for fixed factors used to produce the exported good, and produce the imported good. A) ambiguous; positive; negative B) positive; positive; positive C) ambiguous; negative; positive D) positive; ambiguous; ambiguous E) negative; ambiguous; ambiguous 34) The overall welfare effects of trade are A) positive; the domestic economy grows faster than do foreign eco b) positive; more people gain from...
1. Credit items in a countries balance of payments correspond to anything: a) that increases supply for foreign currency b) that increases demand for foreign currency c) that decreases domestic money supply. d)merchandise imports e) capital outflows 2. The balance of payments is: a) positive if the country is a lender in the international capital market b) negative if the country is a borrower in the international capital market c)positive if the country has a trade surplus d) always is...
An open economy is described by the following system of macroeconomic equations, in which all macroeconomic aggregate are measured in billions of Namibian dollars, N$: Y = C + I + G + X – M C = 10 + 0.8 Yd T = 10+ 0.2Y X = 80 I = 35 G = 15 TR = 10 – 0.05Y M = 22 + 0.1Y Where: Y is domestic income Yd is private disposable income C is...
Imagine an economy that does not have international trade and is initially in equilibrium. In this economy, the marginal propensity to consume is 0.65, and there are no taxes. Refer to Scenario 10.1. Calculate the value of the spending multiplier for this economy.
27. If the value of a country's exports is greater than the value of its imports,it is: A) B) C) D) running a trade surplus. running a trade deficit. in an economic contraction. likely to find its investment spending greater than its level of saving
Question 18 If a country experiences a surge of exports that leads to greater trade surplus, what must happen to this country's financial account to maintain its balance of payments, all else equal? a. The financial account balance will decrease. b. The financial account balance will be unchanged. c. The financial account balance will increase. d. The financial account balance is unrelated to the current account and can change in any direction. 3.33 points Question 19 Suppose that Tesla (an...