QUESTION: 21

Dividend income from shares held overseas is recorded in which of the following balance of payments components?

Capital account
Financial account
Profit account
Current account

Answer(s): D

Reference:

https://www.thebalance.com/current-account-definition-and-4-components-3306265

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QUESTION: 22

The government of Country Z imposes a tariff on all imports of coal from other countries. Which THREE of the following are possible effects of this decision in Country Z? (Choose three.)

The cost of living will fall.
Employment in the coal industry will increase.
The balance of payment will improve.
Government's revenue will improve.
Coal producers will adopt new technologies to improve efficiency.
More resources will be allocated to alternative energy sources.

Answer(s): C,D,F

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QUESTION: 23

Setting a minimum wage above the equilibrium wage:

has no effect on unemployment, and setting a minimum wage below the equilibrium wage results in increased unemployment.
results in increased unemployment, and setting a minimum wage below the equilibrium wage has no effect on unemployment.
results in decreased unemployment, and setting a minimum wage below the equilibrium wage results in increased unemployment.
results in increased unemployment, and setting a minimum wage below the equilibrium wage results in decreased unemployment.

Answer(s): C

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