One Day Essay

2018 Words9 Pages
1 If a country has a trade surplus of $60 billion, which of the following can be true? A) The country's exports are $180 billion, and its imports are $120 billion. B) The country's exports are $110 billion, and its imports are $190 billion. C) The country's exports are $120 billion, and its imports are $180 billion. D) The country's exports are $160 billion, and its imports are $60 billion. Answer: A 2 If a country has a trade deficit of $50 billion, which of the following can be true? A) The country's exports are $150 billion, and its imports are $100 billion. B) The country's exports are $110 billion, and its imports are $160 billion. C) The country's exports are $100 billion, and its imports are $50 billion. D) The country's exports are $150 billion, and its imports are $60 billion. Answer:B 3) According to the theory of comparative advantage, a country ________ the goods in which its has a comparative advantage. A) exports B) imports C) exports and imports D) does not trade Answer: A 4 Thailand has a comparative advantage in rice and an absolute advantage in cell phones. Indonesia has a comparative advantage in cell phones and an absolute advantage in rice. According to this scenario A) Indonesia should export both cell phones and rice. B) Thailand should import both cell phones and rice. C) Thailand should export rice and import cell phones. D) Indonesia should export rice and import cell phones. Answer: C 5 The United States imports DVD recorders from China and China imports computer chips from the United States. If the theory of comparative advantage guides trade between the two countries, it must be true that A) the United States has

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