Stocks and bonds:
a. Are both components of gross private domestic investment.
b. Are not a part of gross private domestic investment, because to include them would be double counting a nation's assets and liabilities.
c. Are not a part of gross private domestic investment, because to include them would be double counting a nation's personal consumption and investment.
d. Are not a part of gross private domestic investment, because they are a part of financial services, which are a separate component of GDP.
e. None of the above.
Question 2 - Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the financial account and monetary base.
a. Financial account would rise and reserves account would fall.
b. Financial account would not change and reserves account would fall.
c. Financial account would not change and reserves account would not change.
d. Financial account would fall and monetary base would not change.
e. Financial account would fall and reserves account would rise.
Question 3 - Which of the following is NOT counted as an economic resource?
a. Forests.
b. Mental abilities of labor.
c. Stocks and bonds.
d. Entrepreneurship.
e. All of the above are included.
Question 4 - Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, what effect would these flows have had on Venezuela's reserves account and value of the Bolivar (the Venezuelan currency)?
a. Reserves account would rise and value of the Bolivar would fall.
b. Reserves account would not change and value of the Bolivar would fall.
c. Reserves account would fall and value of the Bolivar would not change.
d. Reserves account would fall and value of the Bolivar would fall.
e. Reserves account would fall and value of the Bolivar would rise.
Question 5 - Which of the following is NOT counted as an economic resource?
a. Mental abilities of labor.
b. Money supply.
c. Entrepreneurship.
d. Physical labor.
e. All of the above are included.
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