The sum of the current account, capital and financial account, and official settlements account is
A) a positive number if the country has a trade surplus.
B) a negative number if the country has a trade deficit.
C) positive or negative depending on whether the domestic exchange rate is appreciating or depreciating.
D) always equal to zero.
D
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Tax saving so that people spend more and firms' profits are higher
Answer the following statement(s) true (T) or false (F)
Refer to Figure 11-15. Suppose Hilda produces 100 gooseberry pies. What is the marginal rate of technical substitution of labor for capital when labor is increased from 10 to 20 hours?
A) 1 unit of capital B) 10 units of capital C) 14 units of capital D) 24 units of capital
Economic rent is broadly defined as
A) a payment received by a landowner. B) a payment for the use of any resource that has a fixed supply. C) the return to owners of farmland. D) the dividend return on a share of stock.
What do economists mean by “rent seeking” among producers?
a. leasing space to foreign producers who want to house imported goods b. efforts to gain profits from government tariffs and import quotas c. investments in foreign companies holding licenses to import goods d. lobbying to keep foreign competition out of the domestic market