MCQ's

1) Which one of these factors of the aggregate production function, is not a component of economic growth?

Technology

Human Capital

Physical Capital

Land

2) If you know about the GDP, how you can calculate GDP per Capita?

Dividing GDP by the number of workers

Dividing GDP by the physical capital

Dividing GDP by the population

GDP per capita is equal to the labor productivity

1 points

QUESTION 3

Which one of the following options will result in capital deepening?

An increase in the level of education in the country

An increase in the level of physical capital

An increase in the infrastructure

All options are correct

1 points

QUESTION 4

Which option is correct?

Balance of Trade is the summation of the Balance of Payment and Balance of Capital

Balance of Capital is the summation of the Balance of Trade and Balance of Payment

Capital Account is the summation of the Balance of Trade and Balance of Payment

Balance of Payment is the summation of the Balance of Trade and Balance of Capital

1 points

QUESTION 5

"Income payments" are a part of the Current Account Balance. Which option is correct about income payments?

For Canada, income payments refer to money that Canadian financial investors received on their foreign investments.

For Canada, income payments refer to money that Canadian citizens who are working outside of Canada receive and transfer to Canada.

For Canada, income payments refer to money that foreign investors who had invested their funds in Canada receive and transfer to their country.

For Canada, income payments refer to money that foreign workers who are working inside Canada receive and transfer to their country.

1 points

QUESTION 6

If for a country imports are more than exports (based on their monetary value). Which of the following options is correct?

The Balance of Payment is zero

The answer is not clear, it is related to the Balance of Capital

The Balance of Payment is negative

The Balance of Payment is positive

1 points

QUESTION 7

A worker in Canada can produce a TV in 10 hours and a box of chocolate in 4 hours. A worker in Belgium can produce the same TV in 15 hours and a box of chocolate in 5 hours. According to the information, which option is correct?

Canada has the absolute advantage in producing both products and has the comparative advantage in producing TV

Belgium has the absolute advantage in producing both products and has the comparative advantage in producing TV

Canada has the absolute advantage in producing both products and has the comparative advantage in producing chocolate

Belgium has the absolute advantage in producing both products and has the comparative advantage in producing chocolate

1 points

QUESTION 8

A Canadian citizen buys $10,000 of U.S. treasury bills (bond), it is an example of

International trade

Investment from abroad

Income payments

Foreign investment

1 points

QUESTION 9

Which option is correct?

If exports are more than imports, the inflow of financial capital is more than the outflow of financial capital

If exports are more than imports, the outflow of financial capital is always equal to the Inflow of financial capital

If exports are more than imports, the outflow of financial capital is more than the Inflow of financial capital

Exports and imports are related to the Balance of Trade, and the flow of financial capital is related to the Balance of capital. They are two separated markets and are not connected.

1 points

QUESTION 10

What is the relation between the Level of Trade and the Trade Balance?

They are not connected

Their connection is proportional. It means by an increase in the level of trade, we have an increase in the trade surplus or a decrease in the trade deficit

Their connection is negative. It means always by an increase in the level of trade, we have a decrease in the trade surplus

Their connection is positive. It means always by an increase in the level of trade, we have an increase in the trade surplus

1 points

QUESTION 11

There is an earthquake in another part of the world. The Canadian government sends $40 milion to that country as a part of international help. This is an example of which option?

unilateral transfers

Trade balance

Income receipts

income payments

1 points

QUESTION 12

If a country uses the money of another country instead of having a national currency, we call it:

Foreign exchange

Economic convergence

Dollarization

Globalization

1 points

QUESTION 13

I bought some equipment for my company from China. According to the contract I have to pay ten million Yuan at the beginning of September. I don't want that my transactions to be affected by the fluctuations in the exchange market. Which option is correct to avoid the risk in the exchange market?

Portfolio

Arbitrage

Hedge

Speculate

1 points

QUESTION 14

If the Canadian dollar experiences an appreciation, which option is correct?

Export decreases, import decreases, and fewer foreign tourists will come to Canada

Export increases, import decreases, and more foreign tourists will come to Canada

Export decreases, import increases and fewer foreign tourists will come to Canada

Export decreases, import increases and more foreign tourists will come to Canada

1 points

QUESTION 15

In March 2020, the exchange rate between the Canadian dollar and the U.S dollar was 1.44 (a U.S dollar was equal to 1.44 Canadian dollars). In July 2022, this exchange rate is around 1.30. Which option is correct?

The Canadian dollar has an appreciation and the U.S dollar has a depreciation

The Canadian dollar has depreciation and the U.S dollar has a depreciation too

The Canadian dollar has an appreciation and the U.S dollar has an appreciation too

The Canadian dollar has depreciation and the U.S dollar has an appreciation