Prosperity in the United States will

a. increase imports of the United States.

b. increase exports of the United States.

c. increase imports and exports of the United States.

d. eventually lead to prosperity in foreign countries too.

International trade has the potential to

a. increase the availability of goods and services to those nations that export more than they import.

b. increase the availability of goods and services to those nations that have an absolute advantage in the production of a good or service.

c. increase the availability of goods and services to all nations.

d. decrease the availability of goods and services to all nations.

International finance is the study of economics that deals with

a. the balance of trade

b. the macroeconomic consequences of financial flows associated with international trade.

c. international investment opportunities for American multinational corporations.

d. the relationships among world currency dealers.

Holding all else constant, a country's standard of living will decline if its

a. nominal GDP grows at a faster rate than real GDP.

b. nominal GDP grows at a slower rate than real GDP.

c. the rate of population growth exceeds the rate of growth of real GDP.

d. the rate of population growth is less than the rate of growth of real GDP.

Use the rule of 72 to determine how long it takes for real GDP to double if real GDP grows at 3% per year.

a. 12 years

b. 24 years

c. 36 years

d. 72 years

The international trade effect results in

a. a shift to the right in the aggregate demand curve.

b. a shift to the left in the aggregate demand curve.

c. a movement along the aggregate demand curve.

d. a shift in the aggregate demand curve equal to the change in net exports times the multiplier.

When U.S. residents purchase foreign assets,

a. there is an outflow of funds from abroad and this is recorded as a negative item in the current account.

b. there is an outflow of funds from the U.S. and this is recorded as a negative item in the capital account.

c. there is an outflow of funds from abroad and this is recorded as a positive item in the current account.

d. there is an outflow of funds from abroad and this is recorded as a positive item in the capital account.

In the United States since 1960

a. the export share of GDP has increased while the import share of GDP has not changed.

b. the import share of GDP has increased while the export share of GDP has not changed.

c. both the export share of GDP and the import share of GDP have increased.

d. both the export share of GDP and the import share of GDP have decreased.

Approximately what percentage of families in the U.S. own homes?

Select one:

a. 10%

b. 25%

c. 50%

d. 67%