Economics MCQs

Page No. 363

Which of the following would not cause a shift in the long-run aggregate supply curve ?


aAll of these answers shift the long-run aggregate supply curve


bAn increase in the available capital


cAn increase in the available labour


dAn increase in price expectations



Which of the following statements about economic fluctuations is true ?


aNone of these answers


b A depression is a mild recession


c A variety of spending income, and output measures can be used to measure economic fluctuation because most macroeconomic quantitties tend to fluctuate together


dA recession is when output rises above the natural rate of output



The differences between a country’s merchandise exports and its merchandise imports is the ?


abalance of payments


bcapital account


ccurrent account


dbalance of trade


View Answer balance of trade

_______ is needed to balancell the balance of payments statements?


acredit transactions


bdebit transactions


c unilateral transfers


d statistical discrepancy



The balance of trade is a record of ?


aexports and imports of financial assets


b the current account plus capital account


cthe net export of goods and services


dthe value of merchandise exports minus imports



Historically countries at early stages of rapid economic development have tender to experience ?


atrade deficit and an excess of investment over domestic saving


b trade surplus and an excess of investment over domestic saving


ctrade deficits and an excess of domestic savings over investment


dtrade surpluses and an excess of domestic saving over investment



When a country has a trade deficit it ?


a purchases more stocks and bonds from the rest of the world than it sells


bpurchases more goods from the rest of the world than it sells


c sells more goods to the rest of the world than it purchases


dsells more stocks and bonds to the rest of the world than it purchases



A current account surplus implies that ?


athe country is a net lender to the rest of the world


bthe country is running a net capital account surplus


c foreign investment in domestic securities is at very low levels


d All of the above



A nation will a current account deficit will be ?


a lending more money to other nations


bexperiencing a surplus in exports of goods an services


c reducing its indebtedness to other nations


d going further into debt with other nations



The difference between a country’s balance of payments and its balance of international indebtedness?


a is equal to official reserve transactions


b occurs because of foreign exchange fluctuations


c reflects statistical discrepancies


d reflects the difference between flow and stock concepts



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