The circular flow diagram divides the economy into:
a. Domestic sector and foreign sector.
b. Agricultural sector and non-agricultural sector.
c. Producer sector and consumer sector.
d. Operating sector and non-operating sector.
e. Real sector and nominal sector.
Question 2 - Which of the following is not included in a nation's balance of payments?
a. Imports and exports of services.
b. International interest and dividend earnings.
c. Total holdings of the central bank's international reserves.
d. All of the above are included in the balance of payments.
Question 3 - Assumptions about expected national and international macroeconomic variables should play a prominent role in three major business financial documents, which are the:
a. Income statement, balance of payments, and cash flow statement
b. Income statement, balance sheet, and credit report
c. Income statement, balance sheet, and foreign direct investment report
d. Income statement, balance sheet, and cash flow statement
e. Gross national product, inflation, and balance of payments
Question 4 - The difference between a business plan and a scenario plan is:
a. A scenario plan is a one-to-three year planning document, but the business plan is a 10-to-20 year planning document.
b. Really, there is no difference
c. A scenario plan is like a capital budgeting plan. In short, it is for one scenario. But a business plan is for three to five years.
d. A scenario plan is a long-term planning document (normally 10 to 20 years), and a business plan is a three-to-five year plan.
e. None of the above.
Question 5 - The difference between a business plan and a budget is:
a. A budget is a one-to-three year planning document, but a business plan is a 10-to-20 year planning document.
b. Really, there is no difference
c. A budget is a long-term planning document, and a business plan is a very short-term planning document.
d. A business plan is a three-to-five year planning document, and a budget is generally a one-to-three year planning document.
e. None of the above
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