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ap macroeconomics unit 6 study guide

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  • AP Macroeconomics
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  • AP Macroeconomics

ap macroeconomics unit 6 study guide exports - imports - Answer-net exports = trade surplus - Answer-exporting more than importing trade deficit - Answer-exporting less than is imported lowest opportunity cost (comparative advantage) - Answer-what often determines who exports what and who impo...

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  • October 15, 2024
  • 5
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • AP Macroeconomics
  • AP Macroeconomics
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EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.




ap macroeconomics unit 6 study guide

exports - imports - Answer✔✔-net exports =


trade surplus - Answer✔✔-exporting more than importing


trade deficit - Answer✔✔-exporting less than is imported


lowest opportunity cost (comparative advantage) - Answer✔✔-what often determines who exports what

and who imports what?


balance of payments - Answer✔✔-the difference between the amount of money that comes into a

country and the amount that goes out of it




summary of a country's international trade


current account and financial (capital) account - Answer✔✔-what are the two accounts that make up the

balance of payments?


trades in goods and services, investment income, and net transfers - Answer✔✔-what are the three

parts that make up the current account?


balance of trade - Answer✔✔-difference between a nation's exports of goods and services and its

imports of goods and services




ex. toys imported from China, U.S. cars exported to Mexico


Page 1/5

, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.



investment income - Answer✔✔-income from the factors of production including payments made to

foreign investors




ex. money earned by Japanese car producers in the U.S.


net transfers - Answer✔✔-money flows from the private or public sectors




ex. donations, aids and grants, official assistance, and remittance


financial (capital) account - Answer✔✔-the part of the balance of payments that measures the purchase

and sale of financial assets abroad




ex. an American buys a Japanese gov. bond


a Korean company buys a factory in Ohio


foreign direct investment - Answer✔✔-a capital investment that is owned and operated by a foreign

entity


net capital outflow - Answer✔✔-the difference between the purchases of foreign assets by domestic

residents and the purchases of domestic assets by foreign residents (up if more $ leaving; down if more $

coming in)


financial (capital) account surplus - Answer✔✔-inflow > outflow




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