Which of the following is TRUE?
A) A country with a current account surplus is earning more from its exports than it spends on imports.
B) A country could finance a current account deficit by using previously accumulated foreign wealth to pay for its imports.
C) A country with a current account deficit must be increasing its net foreign debts by the amount of the deficit.
D) We can describe the current account surplus as the difference between income and absorption.
E) All of the above are true of current account balances.
E
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The time it takes for policy makers to be sure of what the data are signaling about the future course of the economy is called
A) the data lag. B) the recognition lag. C) the legislative lag. D) the implementation lag. E) the effectiveness lag.
With respect to monopolies, deadweight loss refers to the
A) socially unproductive amounts of money spent to obtain or acquire a monopoly. B) net loss in consumer and producer surplus due to a monopolist's pricing strategy/policy. C) lost consumer surplus from monopolistic pricing. D) none of the above
The basic problem in economics is
A) unlimited needs. B) scarcity. C) demand. D) limited resources.
To combat the undersupply of public goods, a solution is:
A. for the government to step in and provide it directly. B. to place a quota on the consumption of the good. C. to change social norms around consumption of the good. D. put a quota on the amount that people can consume.