ECON312 Quiz Week 7

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ECON312 Quiz Week 7
(TCO 9) What are the economic effects of a depreciation of the US dollar…

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ECON312 Quiz Week 7

ECON312 Quiz Week 7

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(TCO 8) The United States’ most important trading partner quantitatively is (Points : 1)

China

Canada

Mexico

Japan

(TCO 8) The World Trade Organization (Points : 1)

Is also known as the International Monetary Fund (IMF).

Is also known as NAFTA.

Was established to resolve disputes arising under world trade rules.

Enhances world trade by providing interest rate subsidies to foreign borrowers who buy exports on credit.

(TCO 9) Which of the following is not included in the current account of a nation’s balance of payments? (Points : 1)

Its goods exports

Its goods imports

Its net investment income

Its purchases of real assets abroad

(TCO 9) If the dollar price of the yen rises, then (Points : 1)

The yen price of dollars also rises

The dollar depreciates relative to the yen

The yen depreciates relative to the dollar

The dollar will buy fewer U.S. goods

(TCO 9) In recent years, the United States has had large (Points : 1)

Current account surpluses

Capital and financial account deficits

Balance-of-trade deficits

Balance-of-payments surpluses

(TCO 9) When the U.S. dollar decreases in value relative to foreign currencies the: (Points : 1)

Demand for U.S. exports will decrease

Supply of U.S. exports will decrease

Demand for U.S. exports will increase

Supply of U.S. exports will remain constant

(TCO 8) Other things equal, economists would prefer (Points : 1)

Free trade to tariffs and tariffs to import quotas

Free trade to import quotas and import quotas to tariffs

Import quotas to tariffs and tariffs to voluntary export restrictions

Import quotas to free trade and free trade to tariffs

(TCO 8) Refer to the graphs below.  Stanville has a comparative advantage in producing

(Points : 1)

Product A

Product B.

Both Product A and B

Neither Product A nor B

(TCO 9) Which one of the following is not one of the so-called G8 Nations? (Points : 1)

Japan

Canada

United States

China

(TCO 8) In recent years the United States has (Points : 1)

Exported more services abroad than it has imported

Had a small goods trade surplus with Japan

Had a large goods trade surplus with the rest of the world

Maintained an overall trade surplus (goods and services combined) with the rest of the world

(TCO 8 and 10) Evaluate this argument for a trade barrier: “The U.S. needs protection from cheap foreign labor.” Include some reasons why this might be an invalid statement. (Points : 5)

The argument is flawed on several grounds.  First, U.S. consumers benefit from being able to…

(TCO 9) What are the economic effects of a depreciation of the US dollar on US trade balances? (Points : 5)

Depreciation means that it takes more dollars to buy foreign currencies.  This means that…