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
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, 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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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
Page 2/5
