BEC $151$

Exam #$3$

Name

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T F $16$ The balance of payments is not actually an array of all the factors that determine the foreign exchange rate but rather only a few of the factors

T F $17$ Globalization actually contributes to markets having deflationary pressure.

T F $18$ If the dollar value of goods exported to Germany exceeds the dollar value of goods imported from Germany, it is termed a surplus of the Current Account.

T F $19$ The U$.$S$.$ has been a net lender to the rest of the world since $1982.$

T F $20$ A weak U$.$S$.$ dollar currency actually could improve exports for the nation.

T F $21$ China allows its currency, the Yuan, to float, thereby allowing the forces of the market to determine its exchange value.

T F $22$ The proliferation of competition in the global market has led to better quality and more efficient allocation of scarce resources in the world.

T F $23$ If a country's equilibrium price for goods and$/$or services is below the world price, then it is better for them to trade rather than produce.

T F $24$ A tariff actually increases the amount that a domestic country will import.

T F $25$ Growth in international trade is more likely to reduce the producer surplus than to increase it$.$

T F $26$ The Current Account Balance includes only the Merchandise and Service Accounts.

T F $27$ The author of the text for this course argues that globalization always hurts the poor of a nation involved in international trade and even increases the poverty rate.

T F $28$ If a nation is operating on its PPF$,$ the increase in the production of a particular good results in a reduction of some other good because of the scarcity of productive resources.

T F $29$ If the U$.$S$.$ has a trade deficit with mainland China, mainland China must have a trade surplus with the U$.$S$.$ during the same time period.

T F $30$ Only some wealthy nations have comparative advantages in the production of goods and services, while poorer nations do not have comparative advantages in the production of goods and services.