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