?GBM 381 Week 3 Quiz
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1. If a US firm exports $7,000 of goods which are to be paid for within six months, using a double-entry bookkeeping system, what entries should be made in the US balance of payments?
1. Goods export – credit of $7,000; Capital outflow – debit of $7,000
2. Accounts Receivable – debit of $7,000; Inventory – credit of $7,000
3. Goods export – debit of $7,000; Capital outflow – credit of $7,000
4. Accounts Receivable – credit of $7,000; Inventory – debit of $7,000
2. Which of the following are included in the current account?
1. Currently produced goods and services
2. Income on foreign investments
3. Unilateral transfers
4. All of the above
3. Which of the following is an example of a deficit in the balance of payments?
1. The excess of debits over credits in the current and capital accounts
2. The excess of credits over debits in the current account
3. The excess of credits over debits in the capital account
4. Both b & c
4. ____________ have historically been the most important and most used type of trade restriction.
2. Domestic content requirements
3. Import tariffs
4. Export tariffs
5. A(n) __________ is a tax or duty levied on the traded commodity as it enters a nation.
1. ad valorem tariff
2. compound tariff
3. optimum tariff
4. import tariff
6. The difference between what consumers would be willing to pay for each unit of commodity and what they actually pay for that unit is called ____________.
1. producer surplus
2. consumer surplus
3. reservation price
4. import tariff
7. If Japan is accused of dumping televisions into the US market, it is believed that Japan is:
1. selling TVs in the US for a price above production costs
2. selling TVs in the US for a price below production costs
3. producing TVs cheaper than the US can produce them
4. producing TVs at a…