The data in the table above are the U.S. balance of payments. What is the capital and financial account balance?
A) $0
B) $150 billion
C) -$350 billion
D) -$150 billion
D
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Which of the following statements is true?
A. Comparative advantage means that total world output will be greatest when each good is produced by the nation that has the highest domestic opportunity cost of producing it. B. Specialization will be complete among nations when opportunity costs increase as the nations produce more of a particular product. C. Specialization will be less than complete among nations when opportunity costs increase as the nations produce more of a particular product. D. Comparative advantage means that a nation can gain from trade only if it has a lower labor productivity than its trading partner.
Explain how changes in foreign income can impact real GDP in a country
What will be an ideal response?
The infant industry argument for protectionism suggest that an industry must be protected in the early stages of its development so that: a. firms will be protected from subsidized foreign competition
b. domestic producers can attain the economies of scale to allow them to compete in world markets. c. there will be adequate supplies of crucial resources in case they are needed for national defense. d. domestic unemployment will be reduced.
Which of the following would increase the demand for U.S. dollars in the foreign exchange market?
a. the spending of U.S. tourists in France b. the purchase of Japanese automobiles by American consumers c. the sale of U.S. computer equipment to a Canadian buyer d. the purchase of a Mexican shoe factory by a U.S. investor