Refer to Table 18-1. Use the information in the table to prepare a balance of payments account and find the value of the statistical discrepancy. Assume that the balance on the capital account is zero
What will be an ideal response?
CURRENT ACCOUNT
Exports of goods $925
Imports of goods -1,211
Balance of trade -286
Exports of services 623
Imports of services -456
Balance of services 167
Income received on investments 502
Income payments on investments -444
Net income on investments 58
Net transfers -77
Balance on current account -138
FINANCIAL ACCOUNT
Increase in foreign holdings of assets in the United States
2,560
Increase in U.S. holdings of assets in foreign countries
-2,478
Balance on financial account 82
BALANCE ON CAPITAL ACCOUNT 0
Statistical discrepancy 56
Balance of payments 0
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When obtaining information is costly, competition is
A) less effective at forcing prices down. B) more effective at forcing prices down. C) only effective at forcing prices u
Monopolistic competition is defined as a type of market structure in which
A) many firms produce the good. B) firms produce a homogeneous good. C) there are barriers to entry. D) firms can make an economic profit in the long run. E) firms can easily enter the market but cannot easily exit from it.
In recent years the cost of producing wines in the U.S. has increased largely due to rising rents for vineyards. At the same time, more and more Americans prefer wine over beer
Which of the following best explains the effect of these events in the wine market? A) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity. B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity. C) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. D) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity.
The marginal revenue product of a resource:
A. is defined as the marginal product of the resource multiplied by the resource price. B. simply means that a firm should add to its capital stock as long as competition requires it. C. equals the extra output produced by an additional unit of the resource multiplied by the price of that output. D. equals the average product of the resource multiplied by the cost of hiring an additional (marginal) unit of the resource.