Test Bank For International Economics 3rd Edition
| 1. | What country was the world’s largest exporter of goods in 2012? | |
| A) | China | |
| B) | Germany | |
| C) | the United States | |
| D) | Japan | |
| Ans: A Difficulty: Easy Section: Introduction Skill Descriptor: Fact-Based Topic: Introduction | ||
| 2. | Which of the following is a trade flow? | |
| A) | Robert Feenstra purchases $100 million of British treasury bonds. | |
| B) | Robert Feenstra purchases a yogurt factory in France. | |
| C) | Neither of Robert Feenstra’s purchases is considered a trade flow. | |
| D) | Both of Robert Feenstra’s purchases are considered trade flows. | |
| Ans: C Difficulty: Easy Section: Introduction Skill Descriptor: Definitional Topic: Introduction | ||
| 3. | Currently, which of the following countries is the world’s largest exporter of goods (in dollar volume)? | |
| A) | China | |
| B) | the United States | |
| C) | Japan | |
| D) | Germany | |
| Ans: A Difficulty: Moderate Section: Introduction Skill Descriptor: Fact-Based Topic: Introduction | ||
| 4. | Currently, which of the following countries is the world’s largest exporter of goods and services (in dollar volume)? | |
| A) | China | |
| B) | the United States | |
| C) | Japan | |
| D) | Germany | |
| Ans: B Difficulty: Moderate Section: Introduction Skill Descriptor: Fact-Based Topic: Introduction | ||
| 5. | What is the term for a capital flow that is used to purchase or build a tangible asset like a factory? | |
| A) | migration | |
| B) | service exports | |
| C) | service imports | |
| D) | foreign direct investment | |
| Ans: D Difficulty: Easy Section: Introduction Skill Descriptor: Definitional Topic: Introduction | ||
| 6. | When a foreign resident purchases a good or service from someone in the United States, the transaction is: | |
| A) | a U.S. export. | |
| B) | a U.S. import. | |
| C) | bilateral exchange. | |
| D) | a compensating differential. | |
| Ans: A Difficulty: Easy Section: International Trade Skill Descriptor: Definitional Topic: The Basics of World Trade | ||
| 7. | Imports are: | |
| A) | goods or services purchased from a foreign resident. | |
| B) | goods or services sold to foreign residents. | |
| C) | goods only purchased from foreigners—you cannot purchase services from foreigners. | |
| D) | services only—imports do not include goods. | |
| Ans: A Difficulty: Easy Section: International Trade Skill Descriptor: Definitional Topic: The Basics of World Trade | ||
| 8. | Exports are: | |
| A) | goods or services purchased from a foreign resident. | |
| B) | goods or services sold to foreign residents. | |
| C) | goods only sold to foreigners—you cannot sell services to foreigners. | |
| D) | services only—exports do not include goods. | |
| Ans: B Difficulty: Easy Section: International Trade Skill Descriptor: Definitional Topic: The Basics of World Trade | ||
| 9. | Which of the following entries is considered to be a service export? | |
| A) | the Japanese buying soybeans from the United States | |
| B) | the Chinese selling iPhones to the United States | |
| C) | Mexican tourists visiting the Grand Canyon | |
| D) | the French selling wine to the United States | |
| Ans: C Difficulty: Moderate Section: International Trade Skill Descriptor: Concept-Based Topic: The Basics of World Trade | ||
| 10. | Which of the following transactions is NOT a trade flow? | |
| A) | domestic residents’ purchases of foreign-made goods | |
| B) | domestic residents’ purchases of foreign-provided services | |
| C) | domestic residents’ purchases of foreign stocks and bonds | |
| D) | domestic residents’ purchases of foreign-produced software | |
| Ans: C Difficulty: Easy Section: International Trade Skill Descriptor: Definitional Topic: The Basics of World Trade | ||
| 11. | A country’s service exports include: | |
| A) | a restaurant meal purchased by its resident in another country. | |
| B) | equipment or automobiles with a warranty and a service contract sold to a foreign resident. | |
| C) | a ticket on a country’s airline sold to a foreign resident. | |
| D) | a country’s resident who migrates to work in another country. | |
| Ans: C Difficulty: Moderate Section: International Trade Skill Descriptor: Concept-Based Topic: The Basics of World Trade | ||
| 12. | The difference between the total value of a country’s exports and the total value of its imports is defined as the country’s: | |
| A) | trade status. | |
| B) | trade balance. | |
| C) | trade deficit. | |
| D) | bilateral trade balance. | |
| Ans: B Difficulty: Easy Section: International Trade Skill Descriptor: Definitional Topic: The Basics of World Trade | ||
| 13. | An American tourist buys a ticket to an opera in Paris. The U.S. government classifies this transaction as: | |
| A) | a goods’ import of a French Opera. | |
| B) | a service export. | |
| C) | a service import. | |
| D) | a goods’ export. | |
| Ans: C Difficulty: Difficult Section: International Trade Skill Descriptor: Concept-Based Topic: The Basics of World Trade | ||
| 14. | A Chinese student pays tuition at a U.S. university. The Chinese government classifies this transaction as: | |
| A) | a goods’ import. | |
| B) | a service export. | |
| C) | a service import. | |
| D) | a goods’ export. | |
| Ans: C Difficulty: Difficult Section: International Trade Skill Descriptor: Concept-Based Topic: The Basics of World Trade | ||
| 15. | If the value of a nation’s imports is more than the value of its exports, then the nation is experiencing: | |
| A) | a trade deficit. | |
| B) | a trade surplus. | |
| C) | balanced trade. | |
| D) | a trade balance. | |
| Ans: A Difficulty: Easy Section: International Trade Skill Descriptor: Concept-Based Topic: The Basics of World Trade | ||
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