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International Economics, 8e (Krugman) II
Chapter 12 National Income Accounting and the Balance of Payments
1) A country's gross national product (GNP) is
A) the value of all final goods and services produced by its factors of production and sold on the market in a given time period.
B) the value of all intermediate goods and services produced by its factors of production and sold on the market in a given time period.
C) the value of all final goods produced by its factors of production and sold on the market in a given time period.
D) the value of all final goods and services produced by its factors of production and sold on the market.
E) the value of all final goods and services produced by its factors of production, excluding land, and sold on the market in a given time period.
Answer: A
2）The CA is equal to
A) Y - (C - I + G).
B) Y + (C + I + G).
C) Y - (C + I + G).
D) Y - (C + I - G).
E) None of the above.
Answer: A
3）For open economies,
A) S = I.
B) S = I + CA.
C) S = I - CA.
D) S > I + CA.
E) S < I + CA.
Answer: B
4）A . citizen buys a newly issued share of stock in England, paying for his order with a check, which the British company deposits in its own . bank account in New York. How is this transaction accounted for in the balance of payments?
A) financial account, . asset export
B) current account, . service import
C) current account, British good export
D) financial account, British asset import
E) financial account, . asset import
Answer: A
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5) The earnings of a Spanish factory with British owners are
A) counted in Spain's GDP.
B) are part of Britain's GNP.
C) are counted in Britain's GDP.
D) are part of Spain's GNP.
E) Only A and B.
Answer: E
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