The trade balance includes:
a. Imports and exports of only goods.
b. Imports and exports of goods and services.
c. Net exports of goods and services plus transfers.
d. Net exports of goods and services plus net investment income plus transfers.
e. Changes in a nation's reserve assets.
Question 2 - The economic return to oil resources is called:
a. Rent.
b. Wages.
c. Profits.
d. Interest.
e. None of the above.
Question 3 - The narrowest balance of payments measure is the:
a. Financial account.
b. Current account.
c. Balance on goods and services.
d. Trade balance
Question 4 - The economic return to entrepreneurship is called:
a. Rent.
b. Wages.
c. Profits.
d. Interest.
e. None of the above.
Question 5 - Which balance of payments measure shows best if a nation is paying its own way?
a. Trade balance
b. Balance on goods, services, and income
c. Reserves account.
d. Net errors and omissions account
e. Net transfers account
Question 6 - During a recession:
a. Net exports tend to rise.
b. Consumption tends to rise.
c. Net exports remain unchanged.
d. Businesses tend to invest more in new plant and equipment.
e. Inventories tend to fall as businesses sell them off.
Question 7 - Of the following balance of payments measures, which one shows bestwhether there are speculative financial capital flows from the nation?
a. Balance on goods & services.
b. Balance on goods, services, and net income.
c. Overall balance.
d. Financial account.
e. Capital account.
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