Question 1

Classify each of the following in the U.S. balance of payments.
-Volkswagen earns profits in the United States from its new cars.

Accepted Answer

A) credits 
B) debits 
A) credits 
B) debits B

Question 2

Classify each of the following in the U.S. balance of payments.
-British investors purchase U.S. government bonds.

Accepted Answer

A) credits 
B) debits 
A) credits 
B) debits A

Question 3

Classify each of the following in the U.S. balance of payments.
-American tourists travel to Australia.

Accepted Answer

A) credits 
B) debits 
A) credits 
B) debits B

Question 4

Classify each of the following in the U.S. balance of payments.
-U.S. gives foreign aid to Bosnia.

Accepted Answer

A) credits 
B) debits 
A) credits 
B) debits

Question 5

Which of the following is true?

Accepted Answer

A) In equilibrium, with only two countries, the excess demand for loanable funds in one country will equal the excess supply of loanable funds in the other. 
B) Countries with net capital inflows tend to be few or no capital outflows. 
C) Capital flows will tend to decrease real interest rates in countries with a capital inflow. 
D) Both a. and c. are correct. 
A) In equilibrium, with only two countries, the excess demand for loanable funds in one country will equal the excess supply of loanable funds in the other. 
B) Countries with net capital inflows tend to be few or no capital outflows. 
C) Capital flows will tend to decrease real interest rates in countries with a capital inflow. 
D) Both a. and c. are correct.

Question 6

Classify each of the following in the U.S. balance of payments.
-Capital Records sells rock and roll music in Sweden.

Accepted Answer

A) credits 
B) debits 
A) credits 
B) debits

Question 7

Classify each of the following in the U.S. balance of payments.
-German consumer buy Ronco Vegematics made in United States.

Accepted Answer

A) credits 
B) debits 
A) credits 
B) debits

Question 8

Classify each of the following in the U.S. balance of payments.
-Toyota builds a new plant in Ohio.

Accepted Answer

A) credits 
B) debits 
A) credits 
B) debits

Question 9

Which of the following is true?

Accepted Answer

A) When real interest rates are lower in country A than country B there will tend to be a capital flow from country B to country A. 
B) Capital flows tend to move real interest rates in different countries toward equality. 
C) Capital flows will tend to decrease real interest rates in countries with a capital outflow. 
D) Both b. and c. are correct. 
A) When real interest rates are lower in country A than country B there will tend to be a capital flow from country B to country A. 
B) Capital flows tend to move real interest rates in different countries toward equality. 
C) Capital flows will tend to decrease real interest rates in countries with a capital outflow. 
D) Both b. and c. are correct.

Question 10

U.S. imports are considered:

Accepted Answer

A) a credit or plus item in the U.S. balance of payments. 
B) a credit or minus item in the U.S. balance of payments. 
C) a debit or plus item in the U.S. balance of payments. 
D) a debit or minus item in the U.S. balance of payments. 
A) a credit or plus item in the U.S. balance of payments. 
B) a credit or minus item in the U.S. balance of payments. 
C) a debit or plus item in the U.S. balance of payments. 
D) a debit or minus item in the U.S. balance of payments.

Question 11

Classify each of the following in the U.S. balance of payments.
-Russian tourists travel to United States.

Accepted Answer

A) credits 
B) debits 
A) credits 
B) debits

Question 12

Which of the following is true?

Accepted Answer

A) When real interest rates are higher in country A than country B there will tend to be a capital flow from country B to country A. 
B) When real interest rates are higher in country A than country B there will tend to be a capital flow from country A to country B. 
C) Capital flows will tend to increase real interest rates in countries with a capital inflow. 
D) Both b. and c. are correct. 
A) When real interest rates are higher in country A than country B there will tend to be a capital flow from country B to country A. 
B) When real interest rates are higher in country A than country B there will tend to be a capital flow from country A to country B. 
C) Capital flows will tend to increase real interest rates in countries with a capital inflow. 
D) Both b. and c. are correct.

Question 13

Classify each of the following in the U.S. balance of payments.
-Procter & Gamble earns profits in their Mexican facility.

Accepted Answer

A) credits 
B) debits 
A) credits 
B) debits

Classify each of the following in the U.S. balance of payments. -Volkswagen earns profits in the United States from its new cars.

Classify each of the following in the U.S. balance of payments. -British investors purchase U.S. government bonds.

Classify each of the following in the U.S. balance of payments. -American tourists travel to Australia.

Classify each of the following in the U.S. balance of payments. -U.S. gives foreign aid to Bosnia.

Which of the following is true?

Classify each of the following in the U.S. balance of payments. -Capital Records sells rock and roll music in Sweden.

Classify each of the following in the U.S. balance of payments. -German consumer buy Ronco Vegematics made in United States.

Classify each of the following in the U.S. balance of payments. -Toyota builds a new plant in Ohio.

Which of the following is true?

U.S. imports are considered:

Classify each of the following in the U.S. balance of payments. -Russian tourists travel to United States.

Which of the following is true?

Classify each of the following in the U.S. balance of payments. -Procter & Gamble earns profits in their Mexican facility.

Market Failure, Market Efficiency and Welfare

Elasticities

Market in Motion and Price Controls

Demand Supply and Market Equilibrium

Economics Eight Powerful Ideas and the Role and Method of Economics

International Trade, Income Poverty and Health Care

The Markets for Labor Capital and Land

Oligopoly and Strategic Behavior

Monopolistic Competition, Product Differentiation, Monopoly and Antitrust

Firms in Perfectly Competitive Markets

The Firm Production and Costs

Consumer Choice Theory

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Exam 6: International Finance

Classify each of the following in the U.S. balance of payments. -Volkswagen earns profits in the United States from its new cars.

Classify each of the following in the U.S. balance of payments. -British investors purchase U.S. government bonds.

Classify each of the following in the U.S. balance of payments. -American tourists travel to Australia.

Classify each of the following in the U.S. balance of payments. -U.S. gives foreign aid to Bosnia.

Which of the following is true?

Classify each of the following in the U.S. balance of payments. -Capital Records sells rock and roll music in Sweden.

Classify each of the following in the U.S. balance of payments. -German consumer buy Ronco Vegematics made in United States.

Classify each of the following in the U.S. balance of payments. -Toyota builds a new plant in Ohio.

Which of the following is true?

U.S. imports are considered:

Classify each of the following in the U.S. balance of payments. -Russian tourists travel to United States.

Which of the following is true?

Classify each of the following in the U.S. balance of payments. -Procter & Gamble earns profits in their Mexican facility.

Market Failure, Market Efficiency and Welfare

Elasticities

Market in Motion and Price Controls

Demand Supply and Market Equilibrium

Economics Eight Powerful Ideas and the Role and Method of Economics

International Trade, Income Poverty and Health Care

The Markets for Labor Capital and Land

Oligopoly and Strategic Behavior

Monopolistic Competition, Product Differentiation, Monopoly and Antitrust

Firms in Perfectly Competitive Markets

The Firm Production and Costs

Consumer Choice Theory

Filters