If there is a surplus in a country's international trade, then
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e. the value of net exports is positive.
(Surplus means country exports more than it imports. Thus, net exports = exports - imports > 0)
If there is a surplus in a country's international trade, then a. macroeconomic equilibrium does not...
4. In 2008, Canada had net exports of $44.9 billion and sold $488.7 billion of goods and services abroad. Canada had A. $44.9 billion of exports and $443.8 billion of imports. B. $533.6 billion of exports and $488.7 billion of imports. C. $533.6 billion of imports and $488.7 billion of exports. D. $488.7 billion of imports and $443.8 billion of exports. E. $443.8 billion of imports and $488.7 billion of exports. 5. Which of the following factors affects a country's...
Question 12 Initially, there is a trade surplus in a small open economy with a perfect capital mobility. Suppose the world interest rate rw increases. Which of the following statement is correct? A. NX remains positive. B. NX becomes negative. C. NX becomes zero. D. It does not provide sufficient information to conclude if NX is positive, negative, or zero. E. None of the above is correct
One of the central beliefs of mercantilism is that: A) Trade is a positive-sum game in which all countries benefit from trading with each other B) a country that has an absolute advantage in the production of all goods derives no benefits from international trade C) Potential world production is greater with unrestricted free trade than it is with restricted trade D) a country's government should intervene to achieve a surplus in the balance of trade E) a large volume...
Consider the Bolivian market for lemons.The following graph shows the domestic demand and domestic
supply curves for lemons in Bolivia. Suppose Bolivia's government
currently does not allow international trade in lemons.Use the black point (plus symbol) to indicate the equilibrium
price of a ton of lemons and the equilibrium quantity of lemons in
Bolivia in the absence of international trade. Then, use the green
triangle (triangle symbol) to shade the area representing consumer
surplus in equilibrium. Finally, use the purple...
1. International trade... a. Shifts a country's production possibility frontier outwards b. Shifts a country's production possibility frontier inwards c. Moves production within a country's production possibility frontier d. Enables a country to consume outside of its production possibility frontier 2. A customs union... a. Allows members to determine their own trade policies with each other b. Allows members to determine their own trade policies with non-member countries c. Has free trade among member countries but common trade policies with...
for mobile factors, for fixed factors used to 33) In the specific factors model, the effects of trade on welfare are for fixed factors used to produce the exported good, and produce the imported good. A) ambiguous; positive; negative B) positive; positive; positive C) ambiguous; negative; positive D) positive; ambiguous; ambiguous E) negative; ambiguous; ambiguous 34) The overall welfare effects of trade are A) positive; the domestic economy grows faster than do foreign eco b) positive; more people gain from...
1. Credit items in a countries balance of payments correspond to anything: a) that increases supply for foreign currency b) that increases demand for foreign currency c) that decreases domestic money supply. d)merchandise imports e) capital outflows 2. The balance of payments is: a) positive if the country is a lender in the international capital market b) negative if the country is a borrower in the international capital market c)positive if the country has a trade surplus d) always is...
27. If the value of a country's exports is greater than the value of its imports,it is: A) B) C) D) running a trade surplus. running a trade deficit. in an economic contraction. likely to find its investment spending greater than its level of saving
An open economy is described by the following system of macroeconomic equations, in which all macroeconomic aggregate are measured in billions of Namibian dollars, N$: Y = C + I + G + X – M C = 10 + 0.8 Yd T = 10+ 0.2Y X = 80 I = 35 G = 15 TR = 10 – 0.05Y M = 22 + 0.1Y Where: Y is domestic income Yd is private disposable income C is...
Imagine an economy that does not have international trade and is initially in equilibrium. In this economy, the marginal propensity to consume is 0.65, and there are no taxes. Refer to Scenario 10.1. Calculate the value of the spending multiplier for this economy.