Foreign payments to capital, labor, and land owned by domestic entities minus payments to factor service imports equals:[Hint: see page 6 of lecture 5A]Group of answer choicesthe trade balance.the net unilateral transfers.the difference between gross national income and gross national expenditure.the difference between gross national income and gross domestic product.

The difference between what a country receives and pays for its exports and imports of goods.*1 pointbalance of paymentseconomies of scalenew trade theorybalance of tradecomparative cost principle

The difference between Gross Domestic Product and Net Domestic Product is:Group of answer choicesCapital consumption allowanceNational incomeEqual to the difference between full employment and natural employment rateReal GDP

Which of the following is a component of Net factor income from abroad?(a) Net subsidies(b) Net retained earnings of resident companies abroad(c) Net current transfers(d) Net indirect taxe

National is the sum of wages (and other labor compensation), rent, interest, and profits.

If a country’s annual imports are $500 billion and its exports are $200 billion, the difference between the two representsMultiple Choicethe budget deficit.the country’s gross domestic product.the balance of trade.the country’s capital gains.