Macroeconomics Ch. 8

The U.S. negative balance of trade was almost ________ in 2008. $800 billion $600 billion $200 billion $400 billion

$400 billion

Before the ________ the American export-import sector was relatively small. 1970s 1940s 1900s 1990s

1970s

Net exports became negative for the U.S. in the 1930s. 1950s. 1990s. 1970s.

1970s

Our merchandise balance of trade has been negative since the 1970s. 1960s. 1990s. 1980s.

1970s.

After World World II, the United States produced about ______ percent of the world's oil, much of which we exported. 40 60 70 50

60

All of the following are an example of "off-shoring" EXCEPT A retailer hires a local janitorial firm to clean their stores at night. Accounting work that is sent over the Internet by a company in Milwaukee, WI to Ireland. An X-ray read by an Indian physician sent over the Internet from Durango, Colorado. Briefs for law firms typed by people in China.

A retailer hires a local janitorial firm to clean their stores at night.

All of the following are an example of "off-shoring" EXCEPT A retailer hires a local janitorial firm to clean their stores at night. An X-ray read by an Indian physician sent over the Internet from Durango, Colorado. Briefs for law firms typed by people in China. Accounting work that is sent over the Internet by a company in Milwaukee, WI to Ireland.

A retailer hires a local janitorial firm to clean their stores at night.

Which statement is FALSE about the European Union? Workers from an EU country can work in any other member country. Freight is able to move anywhere within the EU without check point delays and paperwork. So-called "quality codes" between members ended. All 27 nations have given up their own currency and adopted the euro.

All 27 nations have given up their own currency and adopted the euro.

Which of the following working conditions are common at sweatshops? a lack of guards on sewing and cutting machines. All of the answers are correct. blocked aisles and fire exits. restricted bathroom break times.

All of the answers are correct.

Which of the following were prominent among the protesters at the WTO meetings since 1999? All of the answers are true. labor union members concerned that free trade undermined worker rights to organize. environmentalists concerned that corporations would locate in countries that had very lax environmental standards. human rights advocates concerned that free trade condoned sweatshop working conditions.

All of the answers are true.

Which of the following were prominent among the protesters at the WTO meetings since 1999? labor union members concerned that free trade undermined worker rights to organize. All of the answers are true. environmentalists concerned that corporations would locate in countries that had very lax environmental standards. human rights advocates concerned that free trade condoned sweatshop working conditions.

All of the answers are true.

Net exports All of the choices are true of net exports. are the smallest component of GDP. have been negative in the United States since the mid-1970s. equal exports minus imports.

All of the choices are true of net exports.

Net exports All of the choices are true of net exports. equal exports minus imports. are the smallest component of GDP. have been negative in the United States since the mid-1970s.

All of the choices are true of net exports.

Net exports equal exports minus imports. are the smallest component of GDP. All of the choices are true of net exports. have been negative in the United States since the mid-1970s.

All of the choices are true of net exports.

Net exports have been negative in the United States since the mid-1970s. All of the choices are true of net exports. equal exports minus imports. are the smallest component of GDP.

All of the choices are true of net exports.

According to Nobel Prize winning economist Joseph Stiglitz the IMF now champions the free market as the best way to run an economy. the IMF was founded on the belief that markets often worked badly. over the years the IMF has markedly changed. All of the choices are true

All of the choices are true.

According to Nobel Prize winning economist Joseph Stiglitz the IMF was founded on the belief that markets often worked badly. over the years the IMF has markedly changed. the IMF now champions the free market as the best way to run an economy. All of the choices are true

All of the choices are true.

Which statement is true? Since the mid-1970s, GDP would have been higher without Xn. All of the statements are true. Xn in the United States has been negative every year since the mid-1970s. Xn in the United States was generally positive for most years from the 1920s until 1971.

All of the statements are true.

Which of the following groups would like to see a rise in the value of the dollar vs. the euro? Exporters of American made tractors and combines. Europeans planning an American vacation. Foreign exchange speculators. Americans planning a European vacation.

Americans planning a European vacation.

Which of the following groups would like to see a rise in the value of the dollar vs. the euro? Foreign exchange speculators. Americans planning a European vacation. Europeans planning an American vacation. Exporters of American made tractors and combines.

Americans planning a European vacation.

The agreement between the U.S., the Dominican Republic and five small Central American countries that will eventually eliminate tariffs among all seven nations is called Mercosur. CAFTA. GATT. NAFTA.

CAFTA.

In 2009, ___________ exceeded Germany in value of exports becoming the world's largest exporter. China Japan Germany Canada

China

The world's largest exporter is Germany. China. Japan. the United States.

China

Which statement is false? During the last ten years, our trade balance in services was negative. Between the early 1990s and 2007 our trade deficit increased substantially. If net exports were not included in GDP, that figure would be higher. After the 1970s, our trade balance has been negative.

During the last ten years, our trade balance in services was negative.

If U.S. imports of goods and services exceed exports GDP in the United States will be less than the sum of consumption, investment, and government purchases. None of the choices are true. net exports for the United States are positive. GDP in the United States will exceed the sum of consumption, investment and government purchases.

GDP in the United States will be less than the sum of consumption, investment, and government purchases.

If U.S. imports of goods and services exceed exports net exports for the United States are positive. None of the choices are true. GDP in the United States will exceed the sum of consumption, investment and government purchases. GDP in the United States will be less than the sum of consumption, investment, and government purchases.

GDP in the United States will be less than the sum of consumption, investment, and government purchases.

If U.S. exports of goods and services exceed imports GDP in the United States will be less than the sum of consumption, investment, and government purchases. net exports for the United States equals gross savings. net exports for the United States equals gross investment. GDP in the United States will exceed the sum of consumption, investment, and government purchases.

GDP in the United States will exceed the sum of consumption, investment, and government purchases.

Which was NOT an argument of the protesters against the IMF, WTO, and the World Bank? Globalization is lowering American wages and exporting high paying jobs. Our subsidized grain exports sold below cost in poor countries, driving local farmers out of business. Globalization is hurting the American standard of living. We are exploiting factory workers in poor countries

Globalization is hurting the American standard of living.

Which was NOT an argument of the protesters against the IMF, WTO, and the World Bank? We are exploiting factory workers in poor countries. Globalization is lowering American wages and exporting high paying jobs. Globalization is hurting the American standard of living. Our subsidized grain exports sold below cost in poor countries, driving local farmers out of business.

Globalization is hurting the American standard of living.

Which of the following European Union (EU) nations has not adopted the euro? Great Britain France Germany Italy

Great Britain

Which of the following European Union (EU) nations has not adopted the euro? Great Britain Italy France Germany

Great Britain

What was the most important advantage to the EU countries that adopted the EURO as their official currency? Introduction of the euro has eased trade and commerce among the nations that adopted the euro. Introduction of the euro increased exports to outside countries. The euro immediately replaced the dollar in international trade. Introduction of the euro increased the disposal income of member countries population.

Introduction of the euro has eased trade and commerce among the nations that adopted the euro.

What was the most important advantage to the EU countries that adopted the EURO as their official currency? Introduction of the euro increased exports to outside countries. The euro immediately replaced the dollar in international trade. Introduction of the euro increased the disposal income of member countries population. Introduction of the euro has eased trade and commerce among the nations that adopted the euro.

Introduction of the euro has eased trade and commerce among the nations that adopted the euro.

Which component of GDP is most likely to be negative? Net exports Government purchases Gross private domestic investment Imports

Net exports

Which component of GDP is most likely to be negative? Net exports Gross private domestic investment Imports Government purchases

Net exports

Which statement is true? Since 2007, the U.S. trade deficit has fallen significantly. The U.S. exports more services than merchandise (in terms of dollars). The U.S. balance of trade was negative for most of the 20th century. Net exports has always been negative.

Since 2007, the U.S. trade deficit has fallen significantly.

Which statement is TRUE, according to economist Joseph Stiglitz? IMF policies are sensitive to the human suffering its policies could create. The IMF takes a "hands off" approach as to how a country uses the money it is lent. The IMF was founded on the belief that there was a need for international pressure for countries to have expansionary economic policies. The IMF was founded on the belief that there was a need for international pressure for countries to cut deficits, raise taxes and interest rates.

The IMF was founded on the belief that there was a need for international pressure for countries to have expansionary economic policies.

Which statement is TRUE, according to economist Joseph Stiglitz? IMF policies are sensitive to the human suffering its policies could create. The IMF was founded on the belief that there was a need for international pressure for countries to cut deficits, raise taxes and interest rates. The IMF was founded on the belief that there was a need for international pressure for countries to have expansionary economic policies. The IMF takes a "hands off" approach as to how a country uses the money it is lent.

The IMF was founded on the belief that there was a need for international pressure for countries to have expansionary economic policies.

Which statement is true? Since the early 1990s the U.S. trade deficit has risen every year. Net exports has always been positive. The U.S. exports more services than merchandise (in terms of dollars). The U.S. balance of trade was positive for most of the 20th century.

The U.S. balance of trade was positive for most of the 20th century.

Which statement is true? The U.S. balance of trade was positive for most of the 20th century. The U.S. exports more services than merchandise (in terms of dollars). Since the early 1990s the U.S. trade deficit has risen every year. Net exports has always been positive.

The U.S. balance of trade was positive for most of the 20th century.

Adam Smith believed all of the following EXCEPT specialization and exchange benefited both individuals and nations. what makes sense in the conduct of a private family's economic endeavors also makes sense in those of a nation. a nation will gain if its citizens trade among themselves, but it will probably lose if it trades with other nations. never attempt to make at home what it will cost more to make than to buy.

a nation will gain if its citizens trade among themselves, but it will probably lose if it trades with other nations.

Net exports are positive when a nation's exports of services exceeds its imports. a nation's exports of goods and services exceed its imports. a nation's exports of goods exceeds its imports. a nation's imports of goods and services exceed its exports.

a nation's exports of goods and services exceed its imports.

Net exports is a negative figure when the economy's stock of capital is declining. a nation's exports of goods and services exceed its imports. depreciation exceeds gross private domestic investment. a nation's imports of goods and services exceed its exports.

a nation's imports of goods and services exceed its exports.

Net exports is a negative figure whenever a nation's exports of goods and services exceed its imports. a nation's imports of goods and services exceed its exports. gross savings is greater than net investment. inventories dwindle.

a nation's imports of goods and services exceed its exports.

Since the GATT agreement in 1947, the world has experienced a reduction of trade barriers among nations in the WTO. the complete elimination of tariffs and other trade barriers among nations. virtually no unfair trading practices among nations. all of the choices are true.

a reduction of trade barriers among nations in the WTO.

Since the GATT agreement in 1947, the world has experienced all of the choices are true. the complete elimination of tariffs and other trade barriers among nations. a reduction of trade barriers among nations in the WTO. virtually no unfair trading practices among nations.

a reduction of trade barriers among nations in the WTO.

In the treatment of American exports and imports, national income accountants add both exports and imports in calculating GDP. subtract exports, but add imports, in calculating GDP. add exports, but subtract imports, in calculating GDP. subtract both exports and imports in calculating GDP.

add exports, but subtract imports, in calculating GDP.

Congress has ratified NAFTA, but not GATT. GATT, but not NAFTA. neither NAFTA nor GATT. both NAFTA and GATT.

both NAFTA and GATT.

Specialization and exchange does NOT particularly benefit either individuals or nations. can benefit nations but not individuals. can benefit individuals but not nations. creates benefits for both individuals and nations.

creates benefits for both individuals and nations.

We run a trade ________ on goods and a trade _________ on services. surplus; deficit surplus; surplus deficit; deficit deficit; surplus

deficit; surplus

We run a trade ________ on goods and a trade _________ on services. surplus; surplus deficit; deficit surplus; deficit deficit; surplus

deficit; surplus

All modern economies depend on workers who have acquired a wide variety of skills ("jacks of all trades"). depend on workers with a high degree of specialized skills. depend on self-sufficient workers. depend on workers who can build their own tools.

depend on workers with a high degree of specialized skills.

All modern economies on workers who can build their own tools. depend on workers with a high degree of specialized skills. depend on self-sufficient workers. depend on workers who have acquired a wide variety of skills ("jacks of all trades").

depend on workers with a high degree of specialized skills.

Modern, highly productive economies have a small degree of specialization. have a high degree of specialization. have no specialization.

have a high degree of specialization.

The relatively small export-import sector in the United States began to grow significantly in the 1920s. in the 1950s. after 1900. in the 1970s.

in the 1970s.

The main criticism Joseph Stiglitz levels at the IMF is that it does not sufficiently promote the market system. it provides too many loans that are not repaid. it no longer promotes economic growth, but rather contraction. it does not provide enough loans.

it no longer promotes economic growth, but rather contraction.

Each of the following is a characteristic of the European Union EXCEPT that freight is able to move anywhere within the EU without checkpoint delays and paperwork. the euro replaced the domestic currencies (eg. francs, marks, lira) in almost half of the member countries. workers from any EU country could seek work in any other member country. its population and GDP are much smaller than those of the United States.

its population and GDP are much smaller than those of the United States.

If more international tourists visited the United States, this would lower the U.S. merchandise trade imbalance. raise the U.S. overall trade imbalance. lower the U.S. overall trade imbalance. raise the U.S. merchandise trade imbalance

lower the U.S. overall trade imbalance.

Between 1990 and 2007 our trade deficit remained about the same. almost doubled. more than quadrupled. decreased substantially.

more than quadrupled.

Between 1990 and 2007 our trade deficit remained about the same. more than quadrupled. almost doubled. decreased substantially.

more than quadrupled.

The population and GDP of the European Union is ___________ that of the United States. much less than comparable to much greater than

much greater than

The population and GDP of the European Union is ___________ that of the United States. much less than much greater than comparable to

much greater than

From 1970 to 2000, relative to other sectors of GDP, net exports were positive and large. negative and large. positive and small. negative and small.

negative and small.

Our trade balance in merchandise is ________ and our trade balance in services is __________. positive; negative negative; negative negative; positive positive; positive

negative; positive

Our trade balance in merchandise is ________ and our trade balance in services is __________. positive; negative positive; positive negative; positive negative; negative

negative; positive

Our trade balance in merchandise is ________ and our trade balance in services is __________. positive; positive negative; negative negative; positive positive; negative

negative; positive

If total imports exceed total exports, other things being constant, then net exports are negative. investment rises. net exports are positive. GDP rises.

net exports are negative.

Hourly wages in Mexico are ____________ those paid in the United States for comparable work. one quarter equal to one half one eighth

one eighth

The most important economic concept to consider when deciding whether to build your own deck or hire it done is law of supply. opportunity cost. law of increasing cost. specialization.

opportunity cost.

The most important economic concept to consider when deciding whether to build your own deck or hire it done is opportunity cost. law of increasing cost. specialization. law of supply.

opportunity cost.

The most important economic concept to consider when deciding whether to build your own deck or hire it done is opportunity cost. law of supply. specialization. law of increasing cost.

opportunity cost.

The most important economic concept to consider when deciding whether to produce a product domestically or import the product is opportunity cost. law of supply. law of increasing cost. law of demand.

opportunity cost.

Two characteristics of a modern economy are barter and self-sufficiency. self-sufficient workers and very little international trade. specialization and exchange. a low standard of living a high poverty rate.

specialization and exchange.

Two characteristics of a modern economy are barter and self-sufficiency. specialization and exchange. a low standard of living a high poverty rate. self-sufficient workers and very little international trade.

specialization and exchange.

All modern economies depend on the exploitation of workers. government ownership of the means of production. free-enterprise. specialization.

specialization.

The basis for international trade is amassing national wealth at the expense of trading partners. maximizing your exports and minimizing your imports. specialization. self-sufficiency.

specialization.

If yesterday the U.S. dollar traded for 100 Japanese yen and today 101 yen for the U.S. dollar, we would say that the U.S. dollar fell in value relative to the yen. that the dollar rose in value relative to the yen. the dollar stayed the same value relative to the yen.

that the dollar rose in value relative to the yen.

If yesterday the U.S. dollar traded for 100 Japanese yen and today 101 yen for the U.S. dollar, we would say that the dollar rose in value relative to the yen. that the U.S. dollar fell in value relative to the yen. the dollar stayed the same value relative to the yen.

that the dollar rose in value relative to the yen.

If yesterday the U.S. dollar traded for 100 Japanese yen and today 101 yen for the U.S. dollar, we would say that the dollar rose in value relative to the yen. the dollar stayed the same value relative to the yen. that the U.S. dollar fell in value relative to the yen.

that the dollar rose in value relative to the yen.

In 2007, Mexico signed a trade pact with Brazil and Argentina. the European Union. China. Japan.

the European Union.

In 2007, Mexico signed a trade pact with China. the European Union. Japan. Brazil and Argentina.

the European Union.

Net exports are income after taxes. the largest component of GDP. the smallest component of GDP. included in government spending.

the smallest component of GDP.

Since the formation of NAFTA, our trade deficit with Mexico has gone ___________ and our trade deficit with Canada has gone ____________. up; down down; up down; down up; up

up; up

Since the formation of NAFTA, our trade deficit with Mexico has gone ___________ and our trade deficit with Canada has gone ____________. down; down down; up up; down up; up

up; up

The establishment of the NAFTA agreement was supported by most economists and people in the business community. has led to the loss of millions of U.S. jobs to Mexico. has more economic integration than the European Union. eliminated all internal tariffs among its three members.

was supported by most economists and people in the business community.