What is a balance of payments system, and what three types of international transactions are typically found in the balance of payments?
What will be an ideal response?
A balance of payments is a system of accounts that measures transactions of goods, services, income, and financial assets between the households, businesses and government of one country and the residents of the rest of the world during a specific time period. The three types of international transactions typically found in a balance of payments are the current account, the financial account, and the capital account.
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Which of the following are TRUE regarding the argument that trade barriers protect U.S. workers from cheap foreign labor? I. Low-wage foreigners are just as productive as U.S. workers. II. U.S. workers have a comparative advantage in low-wage jobs
A) I only B) II only C) I and II D) Neither I nor II is correct.
If a country is currently borrowing more from the rest of the world than it is lending to the rest of the world, the country is a
A) net borrower. B) debtor nation. C) net lender. D) creditor nation.