Which of the Following Statements Is False with Respect to the Net

question 20

Multiple Choice

Which of the following statements is false with respect to the net balance of the balance of payments?

• A) It cannot show a surplus.
• B) It cannot show a deficit.
• C) It is zero because the sum of credits equals the sum of debits.
• D) It can show either a surplus or a deficit.
• E) A deficit in the current account would be offset by a surplus in the financial account, thus ensuring a zero net balance.

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Definitions:

Power Elite Model

A theoretical model of power positing a strong link between government and business.

Upper Class

A socioeconomic group consisting of people with high income, wealth, and social status, often having considerable influence.

Unemployment Rate

The percentage of those not working, but officially defined as looking for work.

Conflict Theory

A theoretical framework that views social life as a competition, arguing that social order is maintained by domination and power.