If the value of a country's merchandise exports is less than the value of its merchandise imports, it is said to have a
a. trade surplus.
b. trade deficit.
c. current account surplus.
d. capital account deficit.
B
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In a command economy, the ultimate decision about what to produce is left to
A) buyers. B) the government. C) sellers. D) households.
Laws in some countries require bystanders to come to the aid of people in mortal danger. This legal obligation is called
A) compulsory volunteerism. B) judicial discretion. C) the duty to rescue. D) eminent domain.
If a country's nominal interest rate is zero, then
A) the country's economy is in a liquidity trap. B) exchange rates with other countries are likely to decline. C) exchange rates with other countries are likely to increase. D) monetary policy is likely to be very effective in stimulating the economy. E) the country's economy has achieved monetary equilibrium.
Which of the following would be counted in U.S. GDP?
a. the purchase of an old house b. the purchase of a new textbook c. the purchase of a $1,000 government savings bond d. washing your car in the driveway e. the purchase of 50 shares of IBM stock