Question 1
A current account deficit means:
A.
Inflation is 0% B.
More outflows than inflows on the current account C.
Exports exceed all imports always D.
Government budget is balanced
Question 2
What is meant by visible trade?
A.
Trade in services. B.
Ability to sell goods abroad at competitive prices. C.
Imports of goods/services exceed exports. D.
Trade in goods.
Question 3
What is meant by competitiveness?
A.
Capital transfers and non-produced assets. B.
Imports of goods/services exceed exports. C.
Overall current account net outflow. D.
Ability to sell goods abroad at competitive prices.
Question 4
What is meant by invisible trade?
A.
Trade in goods. B.
Trade in services. C.
Capital transfers and non-produced assets. D.
Record of financial transactions with the rest of the world; must balance overall.
Question 5
Net trade equals:
A.
GDP per capita B.
C + I + G C.
Imports minus exports D.
Exports minus imports
Question 6
Invisible trade refers to:
A.
Services B.
Tax revenue C.
Capital transfers only D.
Goods only
Question 7
The BoP accounts must:
A.
Show only exports B.
Equal GDP C.
Ignore financial flows D.
Balance overall
Question 8
What is meant by net trade?
A.
Ability to sell goods abroad at competitive prices. B.
Imports of goods/services exceed exports. C.
Capital transfers and non-produced assets. D.
Exports minus imports (X − M).
Question 9
What is meant by balance of payments?
A.
Record of financial transactions with the rest of the world; must balance overall. B.
Overall current account net outflow. C.
Exports minus imports (X − M). D.
Trade in goods/services, primary income, secondary income.
Question 10
What is meant by trade deficit?
A.
Trade in services. B.
Capital transfers and non-produced assets. C.
Record of financial transactions with the rest of the world; must balance overall. D.
Imports of goods/services exceed exports.
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