Distinguish the current account from the financial account
What will be an ideal response?
The current account is the sum of net exports, net income received from investments abroad, and net transfers from abroad. The financial account is the difference between foreign purchases of U.S. assets and U.S. purchases of foreign assets.
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How do the wages in the United States compare to those in northern Europe?
A. U.S. wage rates are higher than those of all northern European nations. B. Northern Europe’s average wage rates are higher. C. U.S. wage rates are higher than those in Germany and the Netherlands. D. They are similar.
In the United States, individuals are forced to make choices
a. because time is scarce, though spending power is not b. because spending power is scarce, though time is not c. though neither time nor spending power are scarce d. because both time and spending power are scarce e. because living standards are low
A major distinction to be made is that deficits count government spending shortfalls ________, and public debt counts ________.
A. as a percentage of GDP; in nominal terms B. from all years; the total from a single year C. in a year; the total amount owed from all years D. in real terms; in nominal terms
Which one of these groups has the highest poverty rate?
A. The elderly B. Children C. White males over 50 D. Working class women