Question 1
What is meant by net trade?
A.
Currency falls in value. B.
Currency rises in value vs other currencies. C.
Quality, branding, reliability of exports. D.
Exports minus imports (X − M).
Question 2
Net trade is calculated as:
A.
M − X B.
X − M C.
G − T D.
C + I
Question 3
What is meant by interdependence?
A.
Currency rises in value vs other currencies. B.
Quality, branding, reliability of exports. C.
Balance of goods and services trade. D.
Partner countries' GDP affects your exports.
Question 4
What is meant by wpidec?
A.
Tariffs, quotas, subsidies to favour domestic firms. B.
Strong Pound Imports Cheaper Exports Dearer. C.
Balance of goods and services trade. D.
Weak Pound Imports Dearer Exports Cheaper.
Question 5
SPICED reminds us that a strong pound makes:
A.
Exports dearer B.
Exports cheaper C.
AD shift left only D.
Imports dearer
Question 6
What is meant by protectionism?
A.
Tariffs, quotas, subsidies to favour domestic firms. B.
Currency falls in value. C.
Strong Pound Imports Cheaper Exports Dearer. D.
Partner countries' GDP affects your exports.
Question 7
A tariff is:
A.
A tax on imports B.
A maximum price C.
A transfer payment D.
A subsidy to exporters
Question 8
A depreciation of sterling tends to:
A.
Improve net trade in the long run (ceteris paribus) B.
Shift LRAS left C.
Worsen net trade always D.
Reduce AD with no offset
Question 9
What is meant by real incomes abroad?
A.
Higher foreign income raises demand for UK exports. B.
Currency rises in value vs other currencies. C.
Currency falls in value. D.
Weak Pound Imports Dearer Exports Cheaper.
Question 10
What is meant by non-price competitiveness?
A.
Quality, branding, reliability of exports. B.
Higher foreign income raises demand for UK exports. C.
Currency falls in value. D.
Balance of goods and services trade.
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