Question

Exports are $800 billion, imports are $900 billion. Which of the following are true? there is...

Exports are $800 billion, imports are $900 billion. Which of the following are true?

there is a trade surplus.
net exports will be a negative number.
aggregate demand will rise when the foreign sector is added in.
all of the above.

Flag this Question

Question 21 pts

Excise taxes are generally progressive.

True
False

Flag this Question

Question 31 pts

Net exports is a negative figure whenever

a nation's exports of goods and services exceed its imports.
a nation's imports of goods and services exceed its exports.
inventories dwindle.
gross savings is greater than net investment.

Flag this Question

Question 41 pts

If Person A earns a salary of $40,000 and Person B earns a salary of $800,000:

Person A will pay the same Medicare tax rate as person B.
Person A will pay a larger Medicare tax rate than person B.
Person A will pay a smaller Medicare tax rate than person B.
The relative Medicare tax rate depends on their exemptions and withholdings.

Flag this Question

Question 51 pts

International trade:

Allows countries to specialize in the goods at which they are best at producing.
can increase the goods and services both trading partners have.
can be unbalanced where on partner exports more to the other than the other way around.
all of the above.

Flag this Question

Question 61 pts

In the treatment of American exports and imports, national income accountants

subtract exports, but add imports, in calculating AE.
add exports and subtract imports in calculating AE.
add both exports and imports in calculating AE.
subtract both exports and imports in calculating AE.

Flag this Question

Question 71 pts

When there is a trade deficit:

the AE line shifts downward by the amount of the deficit.
the slope of the AE line changes.
the AE line shifts upward by the amount of the deficit.
the slope of the 45 degree line changes.

Flag this Question

Question 81 pts

Which is the most accurate statement?

Our trade deficit has narrowed since 1995.
We export more merchandise than we import.
The largest service purchase that foreigners make from the U.S. is educational services.
In recent years foreigners have generally refused to accept U.S. dollars in payment for their goods.

Flag this Question

Question 91 pts

Suppose incomes from 0 to $10,000 have an 8% marginal tax rate, incomes from $10,001 to $20,000 have a 10% marginal tax rate and incomes above that have a 15% marginal tax rate. Your income is $28,000, what is your income tax?

$2,800
$3,000
$3,360
$4,200

Flag this Question

Question 101 pts

Most transfers in the U.S. go to households.

True
False

Homework Answers

Answer #1

Question 1

Net exports is the difference between exports and imports.

In given case,

Exports = $800 billion

Imports = $900 billion

Net exports = Exports - Imports = $800 billion - $900 billion = -$100 billion

Thus, net exports is negative in given case.

Hence, the correct answer is the option (2).

Question 3

Net exports is the difference between exports and imports.

In algebric terms,

Net exports = Exports - Imports

If exports are greater than the imports then net exports turns out to be positive.

On the other hand, if imports are greater than the exports then net exports turns out to be negative.

So, it can be stated that net exports is a negative figure whenever a nation's imports of goods and services exceed its exports.

Hence, the correct answer is the option (2).

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The primary determinant of currency exchange rates is the volume of exports and imports. True False...
The primary determinant of currency exchange rates is the volume of exports and imports. True False Flag this Question Question 102 pts The purchase of U.S. real estate from foreign sources would create a supply of a foreign currency. True False
Question 311 pts When a country exports raw goods at a low price, and imports refined...
Question 311 pts When a country exports raw goods at a low price, and imports refined goods at a high price, this is known as: Group of answer choices Vertical trade. Export commodity concentration. Dual economy. Trade partner concentration. Flag this Question Question 321 pts Saudi Arabia's economy suffers significantly when the price of oil crashes on the world market. This is an example of Group of answer choices A dual economy Export commodity concentration Economies of scale Trade partner...
1) Consider the following statement: “Exports pay for imports. Yet in 2012 the nations of the...
1) Consider the following statement: “Exports pay for imports. Yet in 2012 the nations of the world exported about $540 billion more of goods and services to the United States than they imported from the United States.” The apparent inconsistency of these two statements can be resolved by recognizing that a) these comparisons use different measures of exports and imports. b) in the short run, exports pay for imports, but in the long run a country can import more goods...
q-1 Which of the following statements is true? a With international trade but no government, AE...
q-1 Which of the following statements is true? a With international trade but no government, AE = C + Ig + NX b Negative net exports (due to "large" exports) increase aggregate expenditure beyond what it would be in a closed economy, and thus have an expansionary effect on the economy. "Foreigners are buying more domestic production!". c Positive net exports (due to "large" imports) decrease aggregate expenditure beyond what it would be in a closed economy, and thus have...
Question 1: While the U.S. both imports and exports computers, we import a much larger amount...
Question 1: While the U.S. both imports and exports computers, we import a much larger amount than we export. For this question, assume that the U.S. either imports completely or exports completely and that the trade balance reflects something fundamental about our resources and production costs relative to the rest of the world. Use a detailed diagram to show supply and demand in the market for computers in U.S. Label all areas in the graph in order to answer the...
QUESTION 9 Assume that the yen is selling at a forward discount in the forward-exchange market....
QUESTION 9 Assume that the yen is selling at a forward discount in the forward-exchange market. Then, most likely a. interest rates are higher in Japan than in the United States. b. this currency is gaining strength in relation to the dollar. c. interest rates are declining in Japan. d. this currency has low exchange-rate risk. QUESTION 10 America has run a trade deficit with UK for several years. To eliminate the deficit, the USD must _______ against the British...
Question 1 The exchange rate is the: The opportunity cost at which goods are exchanged The...
Question 1 The exchange rate is the: The opportunity cost at which goods are exchanged The volume at which exports flow out of the country. Price of one currency in terms of another. All of the above. Flag this Question Question 2 Which of the following would create a demand for dollars? When foreign countries buy U.S. exports When the U.S. buys imports from other countries. When the U.S. citizens travel abroad. When U.S. imports are greater than exports. Flag...
2. Current, financial, and capital accounts Consider the following table showing hypothetical balance-of-payments data for the...
2. Current, financial, and capital accounts Consider the following table showing hypothetical balance-of-payments data for the United States. Complete the table by selecting the correct value for each missing entry. Balance-of-Payments (Billions of dollars) Current Account U.S. merchandise exports +65 U.S. merchandise imports -68 Merchandise trade balance -3 U.S. service exports +30 U.S. service imports -65    Services balance -35 Goods and services balance -38 Net investment income from abroad -2 Net unilateral transfers -5 Current account balance -45   ...
1, If a country imports more than it exports, then a. It will not affect the...
1, If a country imports more than it exports, then a. It will not affect the GDP. b. Its GDP will decrease. c. Its GDP will increase. 2, Production of goods and services has become globalized to a large extent as a result of a. multinational corporations' efforts to source inputs and locate production anywhere where costs are lower and profits higher. b. common tastes worldwide for the same goods and services. c. natural resources being depleted in one country...
1. Which of the following best describes the effects of an increase in real interest rates...
1. Which of the following best describes the effects of an increase in real interest rates in Canada? a. It discourages both Canadian and foreign residents from buying Canadian assets. b. It encourages both Canadian and foreign residents to buy Canadian assets. c. It encourages Canadian residents to buy Canadian assets, but discourages foreign residents from buying Canadian assets. d. It encourages foreign residents to buy Canadian assets, but discourages Canadian residents from buying Canadian assets. ____     2.   Which of the following...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT