List all the sources of income-based payments to foreigners
What will be an ideal response?
The different sources of income-based payments to foreigners are as follows:
1. Paying income to foreigners in return for their goods and services — imports.
2. Paying income on assets that foreign residents own in the domestic economy — factor payments to foreigners.
3. Making transfers to individuals who reside abroad or to foreign governments — transfers to foreigners.
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What is the difference between accounting profits and economic profits? Which of the two concepts is more appropriate for explaining decisions made by entrepreneurs? Explain
What will be an ideal response?
When a firm sells products at lower prices to foreign purchasers, it is known as:
a. international dumping. b. restraint of trade. c. price gouging. d. reciprocal dumping.
(Consider This) Which of the following has been an effect of the U.S. government's ethanol program?
A. Prices for crops such as soybeans and sorghum have fallen dramatically. B. Prices for beef, pork, and chicken have risen. C. Water use has declined as corn is a less water-intensive crop. D. All of these effects have resulted from the ethanol program.
Which of the following mechanisms would not be used by a country to defend a fixed exchange rate?
A. The government can alter domestic interest rates to influence short-term international capital flows. B. The government can impose a form of exchange control. C. The government can threaten to shift to a floating exchange rate. D. The government can buy or sell foreign currency to influence the actual exchange rate.