ECO 2012 FINAL (multi choice p1)

International transactions fall into two broad catergories?

international trade and international asset transactions

“International trade” refers to..

purchasing or selling currently produced goods or services across an international border.

If a U.S. importer can purchase $10,000 British pounds for $20,000, the rate of exchange is…

$2 = 1 British pound in the United States.

In international financial transactions, what are the only two things that individuals and firms can exchange?

assets and currently produced goods and services

Which of the following would call for in payments to the United States?

U.S. firms sell insurance to Brazilian shippers.

Which of the following would call for out payments from the United States?

The United States purchases assets abroad.

The current account section in a nation's balance of payments includes?

all of these.

A nation’s capital and financial account..

includes both in payments and outpayments.

There must always be a balance of a nation's…

total international payments

The table contains hypothetical data for the 2016 U.S. balance of payments. All figures are in billions of dollars. The United States has a balance of goods.

surplus of $20 billion.

If a nation's goods exports are $55 billion, while its goods imports are $50 billion, we can conclude with certainty that this nation has a..

Balance of trade (goods) surplus

It may be misleading to label a trade deficit as unfavourable or adverse, because..

a nation’s consumers benefit from a trade deficit during the period it occurs.

Which of the following is not included in the current account of a nation’s balance of payments?

its purchases of real assets abroad

A deficit on the current account

normally causes a surplus on the capital and financial account

In the balance of payments of the United States, U.S. goods imports are recorded as a..

current account entry

According to the United Nations, approximately what percentage of the world’s income is received by the richest one-fifth of the world’s population?

75 percent

Approximately what percentage of the world’s income is received by the poorest one-fifth of the world’s population?

2 percent

which of the given nations would be low-income developing countries(DVCs), according to the World Bank?

Country A only

Which of the given nations would be middle-income developing countries (DVCs), according to the World Bank

countries D and E

Which of the given nations would be high-income countries (IACs), according to the World Bank?

countries B and C

Which of the following is not inversely related to per capita income?

per capita energy consumption

Which of these sets of nations consists of low-income developing nations?

Uganda, Madagascar, and Burkina Faso

In 2014, the United States had _______ percent of the world’s population and produced about ____ percent of the world output

4.4 ; 22

The very poorest low-income DVCs typically have relatively..

low rates of economic growth and relatively high rates of population growth

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential..

will widen

Most of the world’s population lives in..

the DVCs

Which of the following does not correlate positively with economic growth?

the percentage of the population engaged in agriculture

The exports of the DVCs consist largely of..

raw material and farm products

The DVCs are..

located primarily in Africa, Asia and Latin America

The absolute income gap between the IACs and the DVCs has..

increased over time.