Question

15. The type of good with the largest import in the U.S. is:

A. capital goods.

B. consumer goods.

C. industrial goods.

D. automobiles.

16. The type of good with the smallest trade deficit in the U.S. based on data from 2016 is:

A. foods, feeds, and beverages.

B. capital goods.

C. industrial goods.

D. automotive goods.

17. Countries that have a trade surplus have a:

A. positive net capital outflow.

B. positive net capital inflow.

C. negative net capital outflow.

D. positive foreign direct investment.

19. The balance of payments is:

A. the accounting of trade in financial assets.

B. the accounting of trade in goods and capital.

C. positive when a country has a trade deficit.

D. negative when a country has a trade surplus.

20. The income-expenditure identity for a closed economy is:

A. Y = C + I + G.

B. Im − Ex = C + I.

C. Y = C + I + G + NX.

D. Y + G = C + I − NX.

Answer 1

15. Ans: Capital goods

Explanation:

The sequence of the largest to smallest import in the U.S. is:

• Capital goods
• Consumer goods
• Industrial goods
• Automobiles

16. Ans: Capital goods

17. Ans: Positive net capital inflow.

Explanation:

A trade surplus means a country's exports exceed its imports. So, there is a positive net capital inflow.

19. Ans: the accounting of trade in goods and capital.

Explanation:

The balance of payments is the record of all international trade and financial transactions made by a country's residents.

20. Ans: Y = C + I + G.

Explanation:

The income-expenditure identity for a closed economy is: Y = C + I + G.

The income-expenditure identity for a open economy is: Y = C + I + G + NX.