Numerade

Questions asked

ANSWERED

Benjamin Densmore

Numerade educator

Which of the following would cause exports to rise? A) A depreciation of the exchange rate. B) A fall in overseas income. C) An appreciation of the exchange rate. D) None of the above

View Answer

ANSWERED

Rachel Gore

Numerade educator

The following table shows the balances in the three main accounts of a country's balance of payments account: Credits (£m) Debits (£m) Current account 1000 1200 Capital account 10 20 Financial account 1900 1700 How much are net errors and omissions? A) -£20m. B) +£20m. C) -£10m. D) +£10m.

View Answer

ANSWERED

Rachel Gore

Numerade educator

A country has the following items in its balance of payments: £ millions Exports of goods 120 Imports of services 60 Income flows and current transfers from abroad 80 Imports of goods 150 Exports of services 50 Income flows and current transfers going abroad 30 Its balance on trade in goods and services is a: A) deficit of £30m. B) deficit of £40m. C) deficit of £20m. D) surplus of £10m. E) deficit of £10m.

View Answer

ANSWERED

Benjamin Densmore

Numerade educator

When a country hosts the Olympics, this can be expected to: A) reduce the supply of the country's currency on the foreign exchange markets. B) increase the country's exports. C) reduce the country's imports. D) lead to a depreciation of the host country's currency. E) do all of the above.

View Answer

ANSWERED

Benjamin Densmore

Numerade educator

Which of the following would be a credit item in the UK balance of payments? A) A UK company sells computer software to a company in Spain. B) A UK firm hires a non-UK citizen. C) A UK citizen travels to the USA for a two-week holiday. D) The UK government lends money to a developing country.

View Answer

ANSWERED

Benjamin Densmore

Numerade educator

Which were seen to be possible economic advantages of Brexit by those who argued for Brexit? A) The ability to strike more advantageous trade deals with non-EU countries than before. B) Freer trade with EU member states. C) A more flexible immigration policy. D) A) and C).

View Answer

ANSWERED

James Kiss

Numerade educator

For a given number of resources, Japan and the UK can produce the following quantities of motorbikes or bicycles: Motorbikes Bicycles Japan 2000 4000 UK 500 2000 Which statement is correct? A) The UK has a comparative advantage in bicycles. B) Japan has a comparative advantage in bicycles. C) The UK has a comparative advantage in motorbikes. D) The UK has an absolute advantage in bicycles.

View Answer

ANSWERED

Benjamin Densmore

Numerade educator

View Answer

ANSWERED

James Kiss

Numerade educator

The main advantage of trade between two countries is that: A) trade makes both countries more self-sufficient. B) employment in both countries will increase. C) both countries can produce beyond their previous resource and productivity constraints. D) both countries can consume beyond their previous resource and productivity constraints. 44) For a given number of resources, Japan and the UK can produce the following quantities of motorbikes or bicycles: Motorbikes Bicycles Japan 2000 4000 UK 500 2000 Which statement is correct? A) The UK has a comparative advantage in bicycles. B) Japan has a comparative advantage in bicycles. C) The UK has a comparative advantage in motorbikes. D) The UK has an absolute advantage in bicycles.

View Answer

ANSWERED

Benjamin Densmore

Numerade educator

If Argentina has an absolute advantage in the production of wheat and Chile has an absolute advantage in the production of copper, then: A) neither country has anything to gain from specialisation and trade. B) it is reasonable to expect that specialisation and trade will benefit both countries. C) it is reasonable to expect that trade will benefit both countries, but specialisation will not. D) it is reasonable to expect that specialisation will benefit both countries, but trade will not.

View Answer

Andria S.