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Class 12 Economics (Macro Economics) Chapter 6 Open Economy Macroeconomics Quiz 2 (25 MCQs)

Quiz Instructions

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1. If a country has $ 2.4 billion of net exports and purchases $ 4.8 billion of goods and services from foreign countries, then it has
2. If a country had a trade surplus of $ 50 billion and then its exports rose by $ 30 billion and its imports rose by $ 20 billion, its net exports would now be
3. If Japan exports more than it imports,
4. Which of the following equations is correct?
5. Which of the following is a characteristic of the IS curve?
6. Which of the following products would likely be the least accurate if used to calculatepurchasing-power parity?
7. Other things the same, if the exchange rate changes from .30 Kuwaiti dinar per dollar to .35 Kuwaiti dinar per dollar, then the dollar has
8. What is the main disadvantage of using direct controls to achieve balance?
9. Which of the following is an example of foreign direct investment?
10. What is the relationship between fiscal policy and internal balance?
11. International trade is of major importance for understanding
12. Empirically, there is a close positive relationship between domestic savings and investment. This is consistent with what we should expect to observe in
13. What happens to the BP curve when a nation devalues its currency?
14. A U.S. firm buys wool from Australia with U.S. currency. The Australia firm then uses this money to buy electric shears from a U.S. firm. Which of the following increases?
15. Assuming perfect capital mobility and flexible exchange rates, then
16. In Ireland, a pint of beer costs 2.2 Irish pounds. In Australia, a pint of beer costs 4 Australian dollars. If the exchange rate is .5 pounds per Australian dollar, what is the real exchange rate?
17. Refer to Table 31-1. What are Argentina's exports?
18. If the nominal exchange rate between British pounds and dollars is 0.5 pound per dollar, howmany dollars can you get for a British pound?
19. In an open economy, gross domestic product equals $ 1, 650 billion, government expenditure equals $ 250 billion, and savings equals $ 550 billion. What is consumption expenditure?
20. If P = domestic prices, P* = foreign prices, and e is the exchange rate, which of the following is implied by purchasing-power parity?
21. A Japanese firm buys lumber from the United States and pays for it with yen. Other things the same, Japanese
22. When a country's central bank decreases the money supply, its price level
23. Which policy is considered an expenditure-changing policy?
24. Which of the following is a characteristic of the YY curve?
25. Each of the following is a reason why the U.S. economy continues to engage in greateramounts of international trade except which one?
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