Which of the following statements best describes the expected pattern of trade imbalances?
a. The expected pattern of trade imbalances in the world economy has been that low-income economies will run trade surpluses, while middle and high-income economies will run trade deficits.
b. The expected pattern of trade imbalances in the world economy has been that low and middle-income economies will run trade surpluses, while high-income economies will run trade deficits.
c. The expected pattern of trade imbalances in the world economy has been that high-income economies will run trade surpluses, while low- and middle-income economies will run trade deficits.
d. The expected pattern of trade imbalances in the world economy has been that low and high-income economies will run trade surpluses, while middle-income economies will run trade deficits.
c. The expected pattern of trade imbalances in the world economy has been that high-income economies will run trade surpluses, while low- and middle-income economies will run trade deficits.
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Which of the following transactions represents the purchase of a final good or service?
A) General Motors purchases tires from Goodyear to install on its new Chevy Suburbans. B) Aunt Matilda buys a new convection oven for her condo in Boca Raton. C) Dunkin' Donuts purchases coffee beans. D) Tiffany's buys platinum wire to use in the production of its necklaces.
Countries with a high level of bureaucratic inefficiency tend to have low rates of real GDP growth because
A) of complications that keep capital goods from flowing to their most efficient use. B) of poor accounting practices when determining real GDP. C) of poor management skill development in companies. D) they facilitate capital goods development.