Question 1 of 41 0 0 1 0 Points Members of the Euorpean Union A have less autonomy in conducting their monetary and fiscal policies than they did before the euro was introduced B have more autonomy in conducting their monetary and fiscal policies than they did before the euro was introduced C have less autonomy in conducting their monetary policy than they did before the euro was introduced but more autonomy in conducting their fiscal policy D have more autonomy in conducting their monetary policy than they did before the euro was introduced but less autonomy in conducting their fiscal policy Answer Key A Question 2 of 41 1 0 1 0 Points A country s trade balance A must be zero B must be greater than zero C is greater than zero only if exports are greater than imports D is greater than zero only if imports are greater than exports Answer Key C Question 3 of 41 1 0 1 0 Points If income increases in other countries then U S A imports will increase B exports will increase C imports will decrease D exports will decrease Answer Key B Question 4 of 41 0 0 1 0 Points Which of the following is NOT true of the European Union A The EU promoted freer trade between member countries B The EU allows members to benefit from economies of scale in selling to a larger market C The EU provides a common currency for a subset of its members D The EU was established in 1999 Answer Key D Question 5 of 41 1 0 1 0 Points Net exports of a country are the value of A goods and services imported minus the value of goods and services exported B goods and services exported minus the value of goods and services imported C goods exported minus the value of goods imported D goods imported minus the value of goods exported Answer Key B Question 6 of 41 1 0 1 0 Points In the short run an increase in net exports causes A an increase in real GDP and the price level B an increase in real GDP and a decrease in the price level C adecrease in real GDP and an increase in the price level D a decrease in real GDP and the price level Answer Key A Question 7 of 41 1 0 1 0 Points Trade between two nations is mutually beneficial if each specializes in the good in which it has a comparative advantage A True B False Answer Key True Question 8 of 41 1 0 1 0 Points Trade is based on A absolute advantage B comparative advantage C production costs D relative dollar prices Answer Key B Question 9 of 41 1 0 1 0 Points What is a quota A a restriction on exports B a unit tax imposed on a product C a ceiling on the amount of a good or service that can be exported D a ceiling on the amount of a good or service that can be imported Answer Key D Question 10 of 41 1 0 1 0 Points An increase in the U S GDP will result in A an increase in exports of the United States B an increase in imports of the United States C an increase in the dollar exchange rate and a decrease in imports of the United States D an increase in the dollar exchange rate and a rise in imports of the United States Answer Key B Question 11 of 41 1 0 1 0 Points Imports are A people who work in foreign countries B an example of an economic model C whatever is given up to obtain some item D goods produced abroad and sold domestically Answer Key D Question 12 of 41 1 0 1 0 Points International trade A raises the standard of living in all trading countries B lowers the standard of living in all trading countries C leaves the standard of living unchanged D raises the standard of living for importing countries and lowers it for exporting countries Answer Key A Question 13 of 41 1 0 1 0 Points Over the past two decades the United States has A generally had or been very near to a trade balance B had trade deficits in about as many years as it has trade surpluses C persistently had a trade deficit D persistently had a trade surplus Answer Key C Question 14 of 41 0 0 1 0 Points In an open economy as compared to a closed one without international trade A monetary policy is weaker fiscal policy is more powerful B fiscal policy is weaker monetary policy is more powerful C both monetary and fiscal policy are more powerful D both monetary and fiscal policy are weaker Answer Key B Question 15 of 41 1 0 1 0 Points All of the following are determinants of net exports except A domestic and foreign incomes B relative price levels C domestic and foreign trade policies D producers expectations about future prices Answer Key D Question 16 of 41 1 0 1 0 Points A current account deficit exists when A net exports are positive B financial flows out of a country for goods and services is less than financial flows into the country for its goods and services C a country has a trade deficit D an economy buys less from foreigners than it sells to them Answer Key C Question 17 of 41 1 0 1 0 Points All other things unchanged a recession in Japan A increases U S net exports and shifts the U S aggregate demand curve to the right B decreases U S net exports and shifts the U S aggregate demand curve to the right C increases U S net exports and shifts the U S aggregate demand curve to the left D decreases U S net exports and shifts the U S aggregate demand curve to the left Answer Key D Question 18 of 41 1 0 1 0 Points An open economy s GDP is given by A Y C I G B Y C I G T C Y C I G S D Y C I G NX Answer Key D Question 19 of 41 1 0 1 0 Points A tax imposed by a country on an imported good or service is called a A quota B tariff C non tariff barrier D trade embargo Answer Key B Question 20 of 41 1 0 1 0 Points Which is NOT true of Globalization A it refers to increasing economic and cultural interdependency amongst countries B it results in the financial ruin of some countries C it potentially increases economic well being among all countries involved D it results in increasing competition specialization transmission of ideas Answer Key B Question 21 of 41 1 0 1 0 Points The key role of the WTO is to A control world trade B increase free trade C manage quotas D balance world trade Answer Key B Question 22 of 41 1 0 1 0 Points An increase in net exports shifts …