Question 1.

(i)

a. Meat and Dairy sales increase for March 2009 offsets falls in most other manufacturing industries to leave overall manufacturing sales similar to previous quarter.

b. Manufacturing in decline compared to a year earlier.

c. Overall manufacturing sales increases in the March 2009 quarter with increases in most industries.

d. Decline in manufacturing sales over after strong March 2009 result.

(ii)

Dividends paid by New Zealand firms to foreign shareholders would be counted in the Balance of Payments as

a. a capital or financial account receipt.

b. a current account payment.

c. a current account receipt.

d. a capital or financial account payment.

(iii)

Every January we observe a large increase in the number of tourists visiting New Zealand compared to December. If the seasonally adjusted number of tourists visiting in January falls compared to December then it is most likely that

a. the actual number must have had an unexpected fall.

b. the trend is heading downwards.

c. the number of tourists visiting NZ was similar to the previous January.

d. the actual increase was not as large as usual.

(iv)

China runs a current account surplus. What must also be true?

a. China's domestic savings exceeds their investment (I).

b. The value of the Chinese currency is under-valued.

c. China is a net borrower from the rest of the world.

d. Every other country in the world must owe China money.

0 Which of the following headlines would be the most accurate in describing this data? ..-Sales-Seasonally.Adjustedo At December 1997 quarter pricesa By-industrya 10 sa a 2008 Sepa 2009 0 Mara Manufacturing industrya Juna Deco 102 sa a a $(million) 102 . . 815 601 Meat and dairy product sa Other-foodo Beverages, malt and tobacco Textiles and apparel Wood products Paper and paper products.a Printing, publishing Petroleum-and-industrial-chemicalsa Rubber, plastic-and-other-chemical products Non-metallic-mineral productsa Basic-metalsa Structural, sheet-and-fabricated-metala Transport-equipmenta Machinery and equipmenta Furniture and othera All manufacturinga 3,486 3,478 3,323 4,0920 1,633 1,622 1,577 1,434 0 681 657 657 6680 529 515 510 509 936 910 915 669 595 5910 716 692 650 6280 586 591 420 4470 983 944 905 866 581 533 536 5120 566 556 400 962 890 842 7350 593 3450 1,422 1,367 1,372 1,2910 399 359 344 3120 14,752 14,342 13,557 13,5810 348 0 624 512