Page 118 - Macroeconomics. book docx_Neat

B. X + M

C. X - M

D. Y - C

Answer: C

5. An open economy includes:

A. Government only
B. Households only

C. Foreign sector

D. Closed markets

Answer: C

Additional MCQs

6. Trade deficit occurs when:

A. X > M
B. X < M

C. X = M

D. G > T

Answer: A

7. Tariffs are:

A. Subsidies

B. Taxes on imports
C. Taxes on exports

D. Quotas

Answer: B

8. Balance of payments records:
A. Domestic income

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