- Questions & Answers
- + Post
- Get Expert Help
- Get Coins
If the value of a country's exports is greater than the value of of its imports, it is :
a) Trade surplus.
Trade surplus occurs when export exceeds the import of the country, it is positive as well as favourable balance of trade.
When the imports exceeds the value of the exports, we have trade deficit and that is a negative as well as unfavourable balance of trade.
27. If the value of a country's exports is greater than the value of its imports,it...
QUESTION 9 When a country's imports is greater than its exports, the country is experiencing a Ca. trade balance cb. trade residual c. trade deficit d. trade surplus QUESTION 10 The slop of the production possilbilities frontier is equal to a. The marginal cost of the good measured on the horizontal axis b. The marginal cost of the good measured on the vertical axis c. The opportunity cost of the good measured on the horizontal axis d. The opportunity cost...
A country's imports: have no relationship with its balance of payments. affect its exports and exports affect its imports. over time will decrease its overall economic activity. stimulate the imports of other countries. have no affect on its exports.
1. Imports, exports, and the trade balanceThe following table shows the approximate value of exports and imports for Australia from 1992 through 1996. All values are in billions of dollars. In 1994, Australia ran a trade _______ deficit equal to _______ .Which of the following statements is correct? Australia ran consistent trade deficits from 1992 to 1996. Australia ran a trade surplus in 1992. Australia ran a trade surplus in 1994. of the years listed, Australia ran its largest trade surplus in 1993.
2. Given the following data representing the goods market in an open economy Marginal propensity to consume Autonomous consumption Direct tax rate Autonomous Taxation Transfers Gov spending 0.5 300 0.1 100 200 Investment Mareinal propensity to import Autonomous imports Exports 10000 2000 0.2 50 6000 uning the Keymnesan cross model compute a) The equilibrium level of the aggregate output b) The value of public savings corresponding to the equilbrium level of the output; say if the country is running a...
Z. Given the following data representing the goods market in an open economy Marginal propensity to consume 0.5 300 Direct tax rate Autonomous Taxation Transfers 0.1 100 200 10000 Gov spending 2000 0.2 50 6000 investment Marrinal propensity to import Autonomous imports Exports Using the Keynesian cross-model, compute a) The equilibrium level of the aggregate output The value of public savings corresponding to the equilibrium level of the output; say if the country is running a budget deficit or surplus...
Imports, exports, and the trade balance The following table shows the approximate value of exports and imports for the United States from 1983 through 1987. Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of GOP. If necessary, round your answers to the nearest hundredth. Between 1984 and 1985, the _______ _______ In dollar terms and _______ as a percentage of GOR.
A5-10. Suppose the following aggregate expenditure model describes an economy: C = 100 + (5/6)Yd T = (1/5)Y 1 = 200 G = 400 X = 300 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y is national income, I is investment, G is government spending, X is exports, and IM is imports. (a) Derive a numerical expression for aggregate expenditure (AE) as a function of Y. Calculate the equilibrium level of national income....
Question 16 Which of these would not appear in a country's current account? a. value of exports b. value of imports c. net transfers of money d. net increase in foreign-owned holdings 3.33 points Question 17 If a country has a $300 billion trade deficit, a balance on income (inflow – outflow) of $200 billion, and no net transfers, what is this country's current account balance? a. –$500 billion b. –$100 billion c. $100 billion d. $500 billion
Questions: c) An emergency tariff on a wide range of imports would be effective in addressing U.S deficits and forcing other nations to purchase more U.S. exports; d) One reason the U.S. does not export more is lagging investment in domestic industries. Why Protectionism Cannot Cure the Trade Deficit The causal link between investment flows, exchange rates, and the balance of trade explains why protectionism cannot cure a trade deficit. In his 1997 book, One World, Ready or Not, Washington...
If a nation has a surplus in its current account, 1. it exports fewer goods than it imports 2. it exports more goods than it imports 3. the value of its currency should fall 4. the value of its currency should rise a. 1 and 4 b. 2 and 4 c. 2 and 3 d. 1 and 3