China's high net exports must be balanced by:
A. low net capital outflows.
B. high net capital inflows.
C. high net capital outflows.
D. low net imports.
Answer: C
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Usually an abundance of natural resources ________ labor productivity.
A. increases B. has no effect on C. decreases D. doubles
Which of the following is a drawback of a floating exchange-rate system?
A. Adverse foreign trade shocks are especially damaging since any intervention by the central bank adds to the recession. B. Overshooting of exchange rates may cause excessive resource shifts into and out of trade-oriented industries. C. Inflation is fully transmitted from one country having a higher rate of inflation to another one having a lower rate. D. Monetary policy is ineffective in raising aggregate demand since it cannot be directed toward achieving internal balance.
Opportunity cost is
A. what we give up to get something else. B. the same as real cost. C. marginal cost divided by total cost. D. all of the above.
Suppose $100 is deposited in a bank account paying 5% compounded annually. If the interest earned is X after 5 years, then the interest earned will be 2X after 10 years
Indicate whether the statement is true or false