Economics MCQs

A. Merchandise imports equal merchandise exports
B. Capital imports equal capital exports
C. Services exports equal services imports
D. The total surplus or deficit equals zero

A. Capital account transactions
B. Current account transactions
C. Unilateral transfer transactions
D. Merchandise trade transactions

A. Balance of trade
B. Capital account
C. Current account
D. Balance of payments

A. Mean a loss of foreign exchange
B. Bring foreign exchange into the country
C. Indicate a surplus exist
D. Exist at the bottom line after all accounts are totaled

A. Merchandise trade deficits
B. Merchandise trade surpluses
C. Capital/financial account surpluses
D. Capital/financial account deficits

A. Engage in more government spending
B. Reduce government taxes
C. Increases private investment spending
D. Decrease domestic consumption

A. The sum of merchandise trade and services
B. The current account plus long-term capital
C. The value of merchandise exports minus imports
D. Short-term capital plus the basic balance

A. A credit item in the current account
B. A debit item in the capital account
C. A credit item in the capital account
D. A debit item in the current account

A. Merchandise trade account
B. Services account
C. Unilateral transfers account
D. Capital account

A. Is true by definition in all possible circumstances
B. Is supported by recent u.s history
C. Focuses only on the overall economy and is thus always true
D. Fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending