Question

1. The Argentinian crisis of 2001 was brought about by:

a. debt crisis.

b. exchange rate crisis.

c. excessive loss of national resources.

d. None of these statements is true.

2. The type of good with the smallest trade deficit in the U.S. based on data from 2016 is:

a. foods, feeds, and beverages.

b. capital goods.

c. industrial goods.

d. automotive goods.

3. For nearly every year since 1970, the United States has

a. imported more than it exported.

b. exported more than it imported.

c. imported about the same as it has exported.

d. held to very isolationist trade policy.

4. The sale of each iPhone in the U.S. counts as an:

a. import, because they are assembled in China.

b. import, because they are assembled in Mexico.

c. export, because they are assembled in China.

d. export, because they are produced in the U.S.

Answer 1

The crises in Argentina begin in 2001 due to number of notable reasons. The main events are as : a hard currency peg, currency overvaluation, economic rigidities, inappropriate fiscal policy, external shocks, large scale foreign currency borrowing followed by a sudden stop in capital inflows.

1). The correct option is (b).

Exchange rate crises.

2). The correct option is (a).

Food, feeds and beverages.

The trade deficit is when imports are more than imports. The USA has lowest trade deficit for consumer goods in 2016.

3). The correct option is (a).

Imported more than it exported.

The USA is importing more than it exports. The USA is capital abundant country.

4). The correct option is (d).

Export because they are produced in US.

The iPhones are assembled in china and the parts are manufactured in US. So sale is counted as exports.

Hope you got the answer.

Kindly comment for further explanation.

Thanks ?