Describe the three major broad categories of items that define the parts of a country's balance of payments.
What will be an ideal response?
POSSIBLE RESPONSE: There are three broad categories of items that define the three parts of a country's balance of payments: the current account, the financial account, and the official international reserves account. The current account includes all debit and credit items that are exports and imports of goods and services, income receipts and income payments, and gifts. The balance on goods and services measures the country's net exports. It is often called the trade balance. The private finance account balance consists of the net value of flows of financial assets and similar claims, excluding official international reserve asset flows. The values reported in the financial account are for the principal amounts only of assets trade. Any flows of earnings on foreign assets are reported in the current account. Changes in official holdings of international reserves are reflected in the official international reserves account. Official international reserve assets are money-like assets that are held by governments and that are recognized by governments as fully acceptable for payments between them.
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The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium output, the
A) marginal private cost exceeds the marginal private benefit. B) marginal private cost is less than the marginal private benefit. C) marginal social cost equals the marginal private benefit. D) marginal social cost is greater than the marginal private benefit.
A country can control
A) its flexible exchange rate. B) monetary policy oriented toward domestic goals. C) international capital movements. D) foreign inflationary policies. E) and avoid risks in international trade.
In the article "Walmart Shutters Quebec Store as Union Closes In," the company argued all of the following except
A. It is not profitable to hire 30 additional workers at an already unprofitable store. B. Unions demanded higher labor costs that would make the store unprofitable. C. Unions impose inefficient work rules. D. The store would be the only unionized Walmart store.
An increase in _____ will shift the SRAS curve
Fill in the blank(s) with the appropriate word(s).