Chapter12NationalIncomeAccountingandtheBalanceofPayments1)Acountry'sgrossnationalproduct(GNP)isA)thevalueofallfinalgoodsandservicesproducedbyitsfactorsofproductionandsoldonthemarketinagiventimeperiod.B)thevalueofallintermediategoodsandservicesproducedbyitsfactorsofproductionandsoldonthemarketinagiventimeperiod.C)thevalueofallfinalgoodsproducedbyitsfactorsofproductionandsoldonthemarketinagiventimeperiod.D)thevalueofallfinalgoodsandservicesproducedbyitsfactorsofproductionandsoldonthemarket.E)thevalueofallfinalgoodsandservicesproducedbyitsfactorsofproduction,excludingland,andsoldonthemarketinagiventimeperiod.Answer:A2）TheCAisequaltoA)Y-(C-I+G).B)Y+(C+I+G).C)Y-(C+I+G).D)Y-(C+I-G).E)Noneoftheabove.Answer:A3）Foropeneconomies,A)S=I.B)S=I+CA.C)S=I-CA.D)S>I+CA.E)S<I+CA.Answer:B4）AU.S.citizenbuysanewlyissuedshareofstockinEngland,payingforhisorderwithacheck,whichtheBritishcompanydepositsinitsownU.S.bankaccountinNewYork.Howisthistransactionaccountedforinthebalanceofpayments?A)financialaccount,U.S.assetexportB)currentaccount,U.S.serviceimportC)currentaccount,BritishgoodexportD)financialaccount,BritishassetimportE)financialaccount,U.S.assetimportAnswer:A5)TheearningsofaSpanishfactorywithBritishownersareA)countedinSpain'sGDP.B)arepartofBritain'sGNP.C)arecountedinBritain'sGDP.D)arepartofSpain'sGNP.E)OnlyAandB.Answer:E6）"TheBalanceofpaymentsisalwaysbalanced."Discuss.Answer:True.Everyinternationaltransactionautomaticallyentersthebalanceofpaymentstwice,onceasacreditandonceasadebit.Currentaccount+financialaccount+capitalaccount=07)"Thebalanceofpaymentsaccountsseldombalanceinpractice."Discuss.Answer:True.Themainreasonsareduetothefactthatdatacollectedorreceivedfromdifferentsourcesmaydifferincoverage,accuracy,andtiming.Inaddition,dataonservicesarenotreliableaswellasdatafromthefinancialaccount.Moreover,accuratemeasurementsofinternationalinterestanddividendreceiptsareparticularlydifficult.8）Fillinthefollowingtable:Answer:Chapter13ExchangeRatesan