Hw3AK - ECN 162 International Economic Relations Ina...

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ECN 162 International Economic Relations University of California - Davis Ina Simonovska Fall 2010 Assignment 3 Answer Key (Maximum Points: 100) Due Tuesday, November 23, at the beginning of class. Multiple-Choice Questions (Each question is worth 1 point, Total 31 Points) Instructions: Please use scantrons to complete the multiple choice section. 1. A balance of trade deficit occurs when a country A) exports more goods than it imports. B) buys more goods from the rest of the world than it sells. C) buys more stocks and bonds from the rest of the world than it sells. D) both (b) and (c). 2. Which of the following transactions is a debit in the current account? A) export of merchandise B) export of services C) food gift to foreigners D) foreign bond purchase 3. is necessary to "balance" the BOP statement. A) Reserve inflow B) Statistical discrepancy C) Debit transaction D) Credit transaction 4. According to the National Income Accounting Identity, the current account is equal to A) S-I B) C+I+G+X C) I+X D) T-G 5. Which of the following factors is not part of the CA of a country? A) exports B) imports C) unilateral transfers D) Social Security contributions 6. The term net unilateral transfers refers to: A) income paid to foreign nonresident workers minus income earned abroad by a nation's own workers B) gifts, charitable contributions, and foreign aid. C) gifts, charitable contributions, and aid to residents of the home nation minus the same types of transfers to foreign residents. D) government subsidies to home corporations minus the same government subsidies to international corporations. 1
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7. The difference (balance) between asset exports and asset imports is called: A) the current account. B) the balance of debt. C) capital remainder flows. D) the balance on the financial account. Consider the following hypothetical information on the National Income and Product Account for the United States. Table: U.S. National Accounts Data 8. (Table: U.S. National Accounts Data) The GDP for the economy provided is ______. A) $11,400 B) $10,575 C) $10,550 D) $10,595 Consider the following hypothetical information on the National Income and Product Account for Canada. Table: Canadian National Accounts Data 2
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9. (Table: Canadian National Accounts Data) The trade balance for the economy provided is ______. A) –$60 B) –$150 C) $150 D) $270 10. (Table: Canadian National Accounts Data) Canada is running: A) a balance of trade surplus. B) a balance of payments surplus. C) a balance of trade deficit. D) a balance of payments deficit. Consider the following hypothetical information on the National Income and Product Account for Ireland. Table: Irish National Accounts Data 11. (Table: Irish National Accounts Data) The GDP for Ireland is ______. A) $2600
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This note was uploaded on 09/25/2011 for the course ECN 162 taught by Professor Ina during the Fall '10 term at UC Davis.

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Hw3AK - ECN 162 International Economic Relations Ina...

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