MACROECONOMICS 1

How many types of balance of payment?

• 4

• 2

• 3

• 1

In current account balance, it is including the ______________

• import goods only

• export goods only

• import and export goods

• import and export service

Which below is NOT the advantages of international trade?

• Act as a engine of growth

• Decrease the quality of local goods

• Enable countries to obtain benefits from specialization

• Decreasing cost through large scale production

Which is the protectionism tools below related with Tariff?

• Imported tax

• Minimum quantity

• Physical control

• Control exchange rate

Why we need a protectionism in international trade?

• To increase employment in the country

• To protect young industries

• To increase income

• To encourage dumping

Which one of the advantages below related with a LOWER OPPORTUNITY COST?

• Absolute advantages

• Comparative advantages

What happen if export goods is more than import goods?

• Balance of payment surplus

• Balance of payment deficit

Which account that included the imported and export goods and services?

• Balance of current account

• Balance of capital and financial account

• Overall balance

Which is Not the effect of Balance of payment deficit?

• Increase income of the country

• Increase indebtedness

• Reduce aggregate demand for goods and services

How the value of currency determined in Floating Exchange Rate System?

• Through the government intervention

• Through demand and supply of the currency

• Through private agency