S = Savings, I = domestic investment, X = exports of goods and services, and M = imports of goods and services Which of the following is true ?

Related Mcqs:

1. What is called the difference in the value of a nation’s imports over exports or exports over imports ?

   A. Trade deficit
   B. Trade simples
   C. Both a & b
   D. Not a nor b

2. The record of a country’s imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?

   A. balance of payments on current account
   B. visible trade balance
   C. balance of trade
   D. balance of payments

3. The record of country’s imports and exports of goods and services is called its ?

   A. visible trade balance
   B. balance of trade
   C. balance of payments on current account
   D. balance of payments.

4. A tax on imports exports, or consumption goods is called ?

   A. Drawback
   B. Duty
   C. Custom
   D. Excise

5. The record of country’s imports and exports of goods is called its ?

   A. balance of trade:
   B. balance of payments
   C. balance of payments on current account
   D. visible trade balance

6. If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing, which of the following is true regarding UK net exports ?

   A. Net exports will rise
   B. None of these answers
   C. Net exports will fall
   D. Net exports will remain unchanged

7. Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?

   A. I and III only
   B. II and III only
   C. I, II and III only
   D. I, II , III only IV

8. ____ was a strategy for industrial development popular in Latin America in the 1950s 1 1960s for promoting domestic production by erecting high protective tariffs on imports of manufactured goods ?

   1. export led growth
   2. import substitution
   3. dynamic hedging
   4. countervailing duties

9. What is called a Tax on imports, exports ?

   A. Drawback
   B. Duty
   C. Custom
   D. Excise

10. The situation when a country imports more than it exports is ?

    A. a recession
    B. a trade surplus
    C. a trade deficit
    D. an expansion.