Answer the following statements true (T) or false (F)
1. There is a correlation between the level of economic development of a nation and the status of its balance of trade.
2. The balance of payments is more like an income statement than a balance sheet.
3. If a U.S. farmer ships grain to Italy, this constitutes a debit transaction in Italy’s balance of payments.
4. Overseas investments by U.S. citizens are recorded as credit items in the financial account of the U.S. balance of payments.
5. Since unilateral transfers do not involve trading of goods or services, they are not included in the current account.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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The figure above shows the supply curve for soda. The market price is $1.00 per soda. The producer surplus from the 20,000th soda is
A) $0.00. B) $0.50. C) $1.00. D) more than $1.00. E) None of the above answers is correct.
The easy money of Japan during the 1990s and early 2000s:
What will be an ideal response?
Graphically, a change in price causes:
A. a movement along a given supply curve, not a shift. B. the demand curve to shift. C. both supply and demand to shift. D. the supply curve to shift.
The IMF granted in November of 2008 a $15 billion dollar loan to Hungary, which was at the time undergoing financial stress as a result of the global crisis
Indicate whether the statement is true or false