The balance of trade is defined as
A) the difference between the value of goods and services exported and the value of goods and services imported.
B) the difference between the value of goods exported and the value of goods imported.
C) the difference between the value of services exported and the value of services imported.
D) none of the above.
Answer: B
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During the latter 1990s and into the early 2000s, the U.S. stock market boomed reflecting rapid growth in the U.S. economy. In terms of demand for and supply of dollars, explain what possible impacts this rapid increase in stock market values could have on the exchange rate.
What will be an ideal response?
Define transfer payments and explain why they are not included in the government purchases section of the GDP accounts
What will be an ideal response?
A Chinese company exchanges yuan (Chinese currency) for dollars. It uses these dollars to purchase scrap metal from a U.S. company. As a result of these transactions, Chinese
a. net exports increase, and U.S. net capital outflow increases. b. net exports increase, and U.S. net capital outflow decreases. c. net exports decrease, and U.S. net capital outflow increases. d. net exports decrease, and U.S. net capital outflow decreases.
Refer to the information provided in Figure 7.4 below to answer the question(s) that follow. 
Figure 7.4Refer to Figure 7.4. The marginal product of the second worker is
A. 10. B. 16. C. 20. D. 32.