Question

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.

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Question 21 pts

Excise taxes are generally progressive.

True

False

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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.

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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.

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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.

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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.

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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.

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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.

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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

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Question 101 pts

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

True

False

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).