Which part of this definition for GDP is incorrect? GDP measures the:
a. Market value of,
b. All final and intermediate goods and services,
c. Produced,
d. By domestically owned or foreign-owned resources,
e. Over a given period of time.
Question 2 - A deficit in the current account means:
a. Actually, a deficit in the current account is impossible. It must equal zero.
b. Imports of goods and services exceed exports of goods and services.
c. The sum of the financial and capital accounts is positive.
d. The sum of exports of goods and services plus net international income is negative.
e. The sum of the financial, capital, and reserve accounts is positive.
Question 3 - Which part of this definition for GDP is incorrect? GDP measures the
a. Market value of,
b. All final and intermediate goods and services,
c. Produced,
d. By domestically owned or foreign-owned resources,
e. Within nations' geographic borders.
Question 4 - For a country with flexible exchange rates, if a nation's interest rate rose, what effect would this have on its current account balance?
a. No effect because interest has no effect on the current account.
b. Increase it because foreign capital flows would be attracted to the nation thereby building economic strength.
c. Decrease it because the exchange rate will appreciate.
d. Increase it because the exchange rate will depreciate.
e. Decrease because the exchange rate will depreciate.
Question 5 - Which part of this definition for GDP is incorrect? GDP measures the:
a. Wholesale value of,
b. All final goods and services,
c. Produced for the market,
d. By domestically owned or foreign-owned resources,
e. within a nation's geographic borders.
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