Chapter 8 - The Export-Import Sector

1		The world's largest trading nation is
			A)	Germany.
			B)	Japan.
			C)	China.
			D)	the United States.
			E)	the Netherlands.
2		In recent years our trade deficits have been
			A)	declining.
			B)	staying about the same size.
			C)	growing slowly.
			D)	growing rapidly.
3		Which is the most accurate statement?
			A)	The United States has a virtually self-sufficient economy.
			B)	Our economy is less self-sufficient than it was in the 1970s.
			C)	Although we are not self-sufficient, we are more self-sufficient than we were in the 1970s.
			D)	The United States is less self-sufficient than most other industrial nations.
4		Our balance of trade in merchandise is _____ and our balance of trade in services is _____.
			A)	positive, positive
			B)	negative, negative
			C)	positive, negative
			D)	negative, positive
5		Which is the most accurate statement?
			A)	Trade deficits are good for our economy.
			B)	One goal of the federal government is to increase the size of our trade deficit.
			C)	We cannot keep running huge trade deficits indefinitely.
			D)	The only people who are worried about our trade deficits are economists.
6		Our trade balance on services is
			A)	positive and growing.
			B)	positive and shrinking.
			C)	negative and growing.
			D)	negative and shrinking.
7		Which one of the following is a major export of the United States?
			A)	VCRs
			B)	cameras
			C)	shoes
			D)	wine
			E)	education
8		Statement I: If we did not add Xn to C + I + G, our GDP would be larger. Statement II: The world's leading trading nation in the 19th century was England.
			A)	Statement I is true and statement II is false.
			B)	Statement II is true and statement I is false.
			C)	Both statements are true.
			D)	Both statements are false.
9		For which one of these nations is exports the greatest percentage of GDP?
			A)	Great Britain
			B)	Germany
			C)	Canada
			D)	the United States
			E)	the Netherlands
10		Which is the most accurate statement?
			A)	Since the establishment of Nafta our unemployment rate has gone down.
			B)	Since the establishment of Nafta our trade deficits with Mexico and Canada have gone down.
			C)	Most economists would agree that Nafta has been a failure.
			D)	Nafta has expanded to Central and South America.
11		Our most important trading partner is
			A)	Japan.
			B)	China.
			C)	Canada.
			D)	Mexico.
			E)	Saudi Arabia.
12		Which is the most accurate statement?
			A)	Nations with the same currency trade three times as much with each other as they would with different currencies.
			B)	The Euro is the currency used by all 15 members of the European Union.
			C)	The European Union and Nafta are the only free trade zones in the world today.
			D)	The United States is the only major trading nation that has not joined the World Trade Organization.
13		The 1999 Seattle protest against the World Trade Organization was organized by each of these groups except
			A)	environmentalists
			B)	labor unions
			C)	human rights activists
			D)	free trade advocates
14		Statement I. Net exports may be defined as imports less exports. Statement II. Most economists support the concept of free trade.
			A)	Statement I is true and statement II is false.
			B)	Statement II is true and statement I is false.
			C)	Both statements are true.
			D)	Both statements are false.