a. an import of a good.
b. a service export.
c. a service import.
d. an export of a good.
ANSWER: c
14. The coronavirus has had a dramatic impact on international trade in services. One service sector involves airline travel, which is an example of a
a. service export for the countries whose citizens are passengers.
b. service import for the country whose company owns the airline.
c. service export for the country whose company owns the airline.
d. good export for the country whose company owns the airline.
ANSWER: b
15. What country was the world's largest exporter of goods in 2018?
a. China
b. Germany
c. the United States
d. Japan
ANSWER: a
16. Currently, which of the following countries is the world's largest exporter of goods (in terms of dollar value)?
a. China
b. the United States
c. Japan
d. Germany
ANSWER: a
17. Currently, which of the following countries is the world's largest exporter of goods and services (in terms of dollar value)?
a. China
b. the United States
c. Japan
d. Germany
ANSWER: a
18. Which of the following transactions is NOT included in the trade balance?
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
ANSWER: c
19. 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.
ANSWER: b
20. 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.
ANSWER: a
21. The bilateral trade balance is measured as
a. the sum of two countries’ trade balances.
b. the difference between two countries’ trade balances.
c. the sum of exports and imports between two countries.
d. the difference between exports and imports between two countries.
ANSWER: d
22. If country X has a GDP of $1 trillion, exports $200 billion to country Y, and imports $300 billion from country Y, then its bilateral trade balance with country Y is:
a. –$100 billion.
b. $100 billion.
c. $500 billion.
d. 50%.
ANSWER: a
23. If a country has consumption equal to $300 billion, investment equal to $100 billion, and government spending equal to $50 billion, and it imports $150 billion in goods and services and exports $200 billion in goods and services, what is that country’s GDP?
a. $500 billion
b. $450 billion
c. $400 billion
d. $50 billion
ANSWER: a
24. The difference in value between a nation's total exports and imports is called:
a. its trade deficit.
b. its bilateral trade balance.
c. balanced trade.
d. its trade balance.
ANSWER: d
25. Whenever the value of a nation's exports is more than the value of its imports, the nation has:
a. a trade deficit.
b. a trade surplus.
c. balanced trade.
d. a trade balance.
ANSWER: b
26. Whenever the value of a nation's exports is less than the value of its imports, the nation has:
a. a trade deficit.
b. a trade surplus.
c. balanced trade.
d. a trade balance.
ANSWER: a