Question : 11) The purchase of foreign assets by Canadians is, for : 1384540

Economics

11) The purchase of foreign assets by Canadians is, for Canada, considered a capital

A) outflow and is recorded as a debit on the current account.

B) outflow and is recorded as a debit on the capital account.

C) inflow and is recorded as a credit on the current account.

D) inflow and is recorded as a credit on the capital account.

E) inflow and is recorded as a debit on the capital account.

12) The purchase of Canadian assets by foreigners is, for Canada, considered a capital

A) outflow and is recorded as a credit on the current account.

B) outflow and is recorded as a debit on the capital account.

C) outflow and is recorded as a debit on the current account.

D) inflow and is recorded as a credit on the capital account.

E) inflow and is recorded as a credit on the current account.

13) Which of the following would appear as a credit item in the trade account of the Canadian balance of payments?

A) dividends payable to Canadians on Canadian-owned assets located in Cuba

B) sales of Canadian steel to European importers

C) Canadian purchases of American-made vehicles

D) purchases by Japanese firms of shares of Canadian firms in the entertainment industry

E) the opening of an Ottawa branch of a Swiss bank

14) Which of the following would appear as a debit item in the trade account of the Canadian balance of payments?

A) dividends payable to Canadians on Canadian-owned assets located in Australia.

B) sales of Canadian steel to European importers.

C) Canadian purchases of Colombian coffee

D) purchases by a Japanese pension fund of CN Rail shares

E) purchases by General Motors of Canadian-made auto parts

15) Payments by Canadians of interest and dividends on foreign-owned capital located in Canada

A) are a debit in the current account.

B) are a debit in the capital account.

C) contribute to a surplus on the trade account.

D) contribute to increased foreign-exchange holding by the Bank of Canada.

E) are a credit in the capital account.

16) Which one of the following transactions would appear as a debit in the current account of the Canadian balance of payments?

A) The Arabian Capital Investment Corporation makes a loan to a Canadian firm.

B) A Canadian subsidiary exports raw materials to its Dutch parent company.

C) Canadians receive dividends on U.S. investment in Latin America.

D) Canadian tourists in France purchase cases of wine.

E) The Bank of Canada purchases euros to hold in its official reserves.

17) Which one of the following transactions would appear as a credit in the capital account of the Canadian balance of payments?

A) Canadians purchase foreign securities.

B) A Dutch firm purchases a uranium mine in Canada.

C) Canadian firms pay dividends to foreigners.

D) Coffee is imported from Venezuela.

E) French tourists buy ski tickets in Canada.

18) If Canadian exports of goods and services were $40 billion, imports of goods and services were $35 billion, transfers by Canadians to foreigners were $2 billion and transfers from foreigners to Canadian citizens were $1 billion, then the current account balance would be

A) + $6 billion.

B) + $4 billion.

C) – $4 billion.

D) – $6 billion.

E) – $7 billion

19) If Canadian purchases of foreign real estate was $100 million, Canadian purchases of foreign-country bonds was $50 million, foreign purchases of Canadian real estate was $75 million, and foreign purchases of Canadian bonds was $35 million, then the capital account balance is equal to

A) + $90 million.

B) + $40 million.

C) – $10 million.

D) – $40 million.

E) – $90 million.

20) Consider Canada’s balance of payments. If the Canadian government were to purchase more foreign-exchange reserves, this transaction

A) represents the sale of an asset, and thus enters as a credit item in the official financing account.

B) represents the purchase of an asset from abroad, and thus enters as a debit item in the official financing account.

C) enters as a credit in the current account.

D) enters as a credit in the capital account.

E) represents the purchase of an asset from abroad, and thus enters as a debit item in the capital-service account.

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July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.