Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?
A) trade deficit
B) Gini coefficient
C) balance of payments
D) purchasing power parity
Answer: C
Learn More :
Multinational Business Chapter 4
- In most cases, if the misery index of a country is high, then consumers and businesses are less likely to spend and invest.
- The Happy Planet Index measures well-being and perceptions of living conditions by assessing areas such as housing, incomes, security, and work-life balance.
- Between 2000 and 2008, China's economy grew at a faster rate than Japan's economy.
- The BRICs are the strongest developed economies in the world.
- In response to the global credit crisis, the United States government took actions that increased economic freedom.
- The collapse of communism in the late 1980s and early 1990s led to a more widespread adoption of the principles of capitalism.
- There is a positive correlation between economic freedom and economic growth.
- A mixed economy is a system where economic decisions are largely market driven and ownership is largely private, but the government intervenes in many private economic decisions.
- In a mixed economy, all dimensions of economic activity, including pricing and production decisions, are determined by a central government plan.
- The government considers itself a better judge of resource allocation than businesses or citizens in a market economy.
- In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all planned by the government.
- A market economy is one in which resources are primarily owned and controlled by individuals and companies.
- A market economy gives individuals the freedom to decide where to work doing what, how to spend or save money, and whether to consume now or later.
- The range of economic systems in the world today, when represented on a spectrum, has one end anchored by the idea of capitalism, the other with that of socialism.
- An economic system is the set of structures and processes that guides the allocation of resources and shapes the conduct of business activities within a country.
- In a country's balance of payments, the current account and the capital account represent equal values.
- The balance of trade is a record of a country's international transactions that take place among companies, governments, or individuals.
- There is a strong relationship between skewed income distributions and the split between those who live in urban settings versus those who live in rural areas.
- Uneven income distribution is largely a problem confined to poorer nations.
- External debt results when the government spends more than it collects in revenues, whereas internal debt results when a government borrows money from foreign lenders.
- The so-called "misery index" is the sum of a country's inflation and unemployment rates.
- Inflation affects interest rates, exchange rates, the cost of living, general economic confidence, and the stability of the current political system.
- Inflation occurs because aggregate demand is growing as fast as aggregate supply.
- The Human Development Index measures the average achievements in a country on three basic dimensions of human development: mortality, knowledge, and standard of living.
- Economic indicators such as GNI, and its expression in terms of per capita, growth rate, and PPP, are not sufficient to develop a clear picture of the overall quality of life in a country.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.