Bus 001 - Ch. 3
The _____ is defined as the difference in value of a country's exports and imports over a period of time.
balance of trade
Imagine you are trying to gather the information needed to calculate the balance of payments for an Eastern European country. To do your calculations, you would need to have information on all of the following EXCEPT: a. foreign aid the country receives b. military expenditures it makes in other countries c. its corporate tax rates d. tourist spending in the country e. its imports and exports
c. its corporate tax rates
In 2018, if the country of Serbia had imports of $10.58 billion and had an unfavorable balance of trade. This means that Serbia had: a. an unfavorable exchange rate b. more than $10.58 billion in exports c. low inflation d. less than $10.58 billion in exports e. exactly $10.58 billion in exports
d. less than $10.58 billion in exports
A country that exports more goods than it imports is said to have a(n):
favorable balance of trade
In 2018, Austria exported $122.5 billion and imported products valued at $118.8 billion. Austria had a(n):
favorable balance of trade
Currency markets operate under a system called _____. This means that prices of currencies vary based upon demand and supply of that currency.
floating exchange rate
A country that imports more goods than it exports is said to have a(n):
unfavorable balance of trade
True or False- Factors of production are common to all productive activities, regardless of the economic system.
True
The difference between a country's total payments to other countries and its total receipts from other countries is called its:
balance of payments
Since the balance of payments is the summary of a country's financial transactions with another country, a discussion of a nation's balance of payments will need to include a discussion of: a. its government loans b. all of the above c. its imports and exports d. its gifts and foreign aid e. its long-term overseas business investments
b. all of the above
The United States buys copper from Chile's Escondido copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S., the copper is an example of a(n):
import (Imports are goods and services that are bought from other countries.)
In 2018, the country of Brazil, had imports of $78.02 billion and had a favorable balance of trade. This means that Brazil had:
more than $78.02 billion in exports
In 2018, Country A exported $1.237 billion and imported products valued at $5.552 billion. The difference between the dollar value of its exports and imports represents a:
trade deficit (An unfavorable balance of trade is also called a trade deficit.)
The _____ is the value of one currency in terms of another.
exchange rate
In 2018, Country A exported $84.9 billion and imported products valued at $74.69 billion. The difference between the dollar value of its exports and imports represents a:
trade surplus (A favorable balance of trade is also called a trade surplus.)
In 2018, Rwanda exported $98 million and imported products valued at $243 million. Rwanda has a(n):
unfavorable balance of trade
When Ted Giovanni was preparing for his trip to Brazil, he found that he could go to his bank and trade his 10 U.S. dollars for 37.11 Brazilian real (the nation's currency). In this instance, the _____ was one U.S. dollar to 3.711 Brazilian real. international trade rate balance of payments balance of trade rate foreign trade rate exchange rate
exchange rate
Canadian logging companies sell timber in the United States. To the U.S., the timber is a(n)_____, and for Canadians, the timber is a(n) _____.
import; export (Imports are goods and services that are bought from other countries. Exports are goods and services produced in one country and sold in other countries.)
The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:
imports
The _____ is the total amount of money that flows in and out of a country.
balance of payments