
Understanding GDP and Capital Flows in an Open Economy
Interactive Video
•
Business, Social Studies
•
10th - 12th Grade
•
Hard

Amelia Wright
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What components make up the GDP in an open economy?
Consumption, investment, and government spending
Consumption, investment, government spending, and net exports
Investment, government spending, and savings
Consumption, savings, and net exports
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the result of subtracting consumption, government spending, and investment from national income?
Net capital inflows
National savings
Foreign investment
Net imports
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does a capital inflow signify in terms of foreign investment?
Residents are selling foreign assets
Residents are buying foreign assets
Foreigners are buying assets in our country
Foreigners are selling assets in our country
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How are net capital outflows related to net exports?
They are less than net exports
They are equal to net exports
They are unrelated to net exports
They are always greater than net exports
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If net exports are positive, what does it imply about foreign trade?
We are importing more than exporting
We are exporting more than importing
Trade is balanced
There is no trade balance
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does it mean if there is a net capital outflow?
Residents are investing more abroad than foreigners are investing domestically
Foreigners are investing more domestically than residents are investing abroad
Investment is balanced between domestic and foreign
There is no investment activity
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the negative of net exports represent?
Net capital inflows
Domestic investment
Net capital outflows
National savings
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