Multiple Choice
1. Which of the following was NOT an impact of the coronavirus on medical resources in early to mid-2020?
a. The United States reduced its tariff on medical equipment imported from China.
b. All countries removed export quotas on medical equipment.
c. Many countries restricted their exports of medical equipment to keep those goods for emergency use at home.
d. Demand for medical equipment rose around the world.
ANSWER: b
2. One of the impacts of the novel coronavirus in 2020 was that trade in medical equipment improved in the world economy to meet the need for medical products in
a. Asia.
b. Europe.
c. North America.
d. Asia, Europe, and North America, along with the developing countries with dense populations.
ANSWER: d
3. 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
ANSWER: d
4. To maintain a steady domestic supply of medical equipment, some countries followed
a. export promotion policies.
b. export quota trade policy.
c. import tariff trade policy.
d. a reduction in trade-restrictive policies in general.
ANSWER: b
5. What is the name given to a tax on imported goods?
a. income tax
b. tariff
c. sales tax
d. excise tax
ANSWER: b
6. When a foreign resident purchases a good or service from someone in the United States, the transaction is categorized as:
a. a U.S. export.
b. a U.S. import.
c. bilateral exchange.
d. a compensating differential.
ANSWER: a
7. Imports are:
a. goods or services purchased from a foreign resident.
b. goods or services sold to foreign residents.
c. goods purchased from foreigners—you cannot purchase services from foreigners.
d. services purchased from foreigners—imports do not include goods.
ANSWER: a
8. Exports are:
a. goods or services purchased from a foreign resident.
b. goods or services sold to foreign residents.
c. goods sold to foreigners—you cannot sell services to foreigners.
d. services sold to foreigners—exports do not include goods.
ANSWER: b
9. Which of the following is considered a service export?
a. Japan buys soybeans from the United States.
b. China sells iPhones to the United States.
c. Mexican tourists visit the Grand Canyon.
d. France sells wine to the United States.
ANSWER: c
10. The key difference between an immigrant and a refugee is that
a. immigrants are driven by a desire to earn a higher income and refugees are prompted by the poverty and danger of the home country.
b. immigration is a matter of personal choice and refugee status is a condition forced on individuals.
c. approval of immigration status takes less time than confirmation of refugee status.
d. it is easier to obtain immigrant status than to gain refugee status.
ANSWER: a
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 the country's airline sold to a foreign resident.
d. a resident who migrates to work in another country.
ANSWER: c
12. An American tourist buys a ticket to an opera in Paris. The U.S. government classifies this transaction as:
a. an import of a French opera, a good.
b. a service export.
c. a service import.
d. an export of a good.
ANSWER: c
13. A Chinese student pays tuition at a U.S. university. The Chinese government classifies this transaction as:
1. Which of the following was NOT an impact of the coronavirus on medical resources in early to mid-2020?
a. The United States reduced its tariff on medical equipment imported from China.
b. All countries removed export quotas on medical equipment.
c. Many countries restricted their exports of medical equipment to keep those goods for emergency use at home.
d. Demand for medical equipment rose around the world.
ANSWER: b
2. One of the impacts of the novel coronavirus in 2020 was that trade in medical equipment improved in the world economy to meet the need for medical products in
a. Asia.
b. Europe.
c. North America.
d. Asia, Europe, and North America, along with the developing countries with dense populations.
ANSWER: d
3. 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
ANSWER: d
4. To maintain a steady domestic supply of medical equipment, some countries followed
a. export promotion policies.
b. export quota trade policy.
c. import tariff trade policy.
d. a reduction in trade-restrictive policies in general.
ANSWER: b
5. What is the name given to a tax on imported goods?
a. income tax
b. tariff
c. sales tax
d. excise tax
ANSWER: b
6. When a foreign resident purchases a good or service from someone in the United States, the transaction is categorized as:
a. a U.S. export.
b. a U.S. import.
c. bilateral exchange.
d. a compensating differential.
ANSWER: a
7. Imports are:
a. goods or services purchased from a foreign resident.
b. goods or services sold to foreign residents.
c. goods purchased from foreigners—you cannot purchase services from foreigners.
d. services purchased from foreigners—imports do not include goods.
ANSWER: a
8. Exports are:
a. goods or services purchased from a foreign resident.
b. goods or services sold to foreign residents.
c. goods sold to foreigners—you cannot sell services to foreigners.
d. services sold to foreigners—exports do not include goods.
ANSWER: b
9. Which of the following is considered a service export?
a. Japan buys soybeans from the United States.
b. China sells iPhones to the United States.
c. Mexican tourists visit the Grand Canyon.
d. France sells wine to the United States.
ANSWER: c
10. The key difference between an immigrant and a refugee is that
a. immigrants are driven by a desire to earn a higher income and refugees are prompted by the poverty and danger of the home country.
b. immigration is a matter of personal choice and refugee status is a condition forced on individuals.
c. approval of immigration status takes less time than confirmation of refugee status.
d. it is easier to obtain immigrant status than to gain refugee status.
ANSWER: a
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 the country's airline sold to a foreign resident.
d. a resident who migrates to work in another country.
ANSWER: c
12. An American tourist buys a ticket to an opera in Paris. The U.S. government classifies this transaction as:
a. an import of a French opera, a good.
b. a service export.
c. a service import.
d. an export of a good.
ANSWER: c
13. A Chinese student pays tuition at a U.S. university. The Chinese government classifies this transaction as: