Which of the following is not true of the statistical discrepancy in the balance of payments?
a. It is residual.
b. It is a measure of net error in the balance of payments data.
c. It is necessary because some transactions go unreported.
d. An excess of credits in all other accounts must be offset by equivalent debits in the statistical discrepancy account.
e. A difference between credits and debits is taken care of by changes in the official reserve transaction account.
QUESTION 2The Internet has created some special problems of intellectual property. One problem is that the
a. Internet is a monopoly, so the price of intellectual property exceeds marginal cost
b. Internet market has not yet reached equilibrium
c. property that can be downloaded, modified, and then re-sold
d. marginal cost of enforcing property rights exceeds the marginal benefit
e. price of intellectual property usually exceeds the marginal benefit
QUESTION 3The statistical discrepancy in the balance of payments
a. is always positive
b. is always negative
c. is always zero
d. is either positive, negative, or zero
e. is indeterminate
QUESTION 4Intellectual property
a. requires copyright protection that is expensive to obtain, but cheap to enforce
b. usually ends up being owned by the government
c. is costly to produce, but can be transmitted at low cost
d. cannot be owned by anyone
e. is usually located on college campuses
QUESTION 5When is a balance of payments account out of balance?
a. only when exports are greater than imports
b. only when imports are greater than exports
c. when exports are either greater or less than imports
d. only when exports are greater or less than imports over a sustained period
e. never
QUESTION 6Intellectual property is
a. a special form of capital
b. a type of labor
c. a special type of service
d. cheap to produce, but expensive to transmit
e. a kind of entrepreneurial ability
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