This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

For further clarification, please email colin@mrmc.com.sg

MCQ 21 (B)

When people take advantage of differences in prices
for the same good by buying it where it is cheap and selling it where it is expensive, it is known
as

a.
net exports.
b.
purchasing power parity.
c.
net capital
outflow.
d.
currency appreciation.
e.
arbitrage.


Suppose a resident of the USA buys a Jaguar car
from the UK, and the UK exporter uses the receipts to buy shares in Boeing. Which of the following
statements is true from the perspective of the UK?

a.
Net exports fall, and net capital outflow
rises.
b.
Net exports rise, and net capital outflow
rises.
c.
none of these answers
d.
Net exports rise, and net capital outflow falls.
e.
Net exports fall, and net capital outflow
falls.
blog it