"When the balance of payments sums to zero is the only situation in which there is an equilibrium." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. The balance of payments are always in balance because of double-entry bookkeeping. The methods used to pay for imports may or may not be an equilibrium. Some ways of financing international transactions can persist indefinitely while others cannot.
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Which of the following is NOT included in the M1 money supply?
A) currency B) passbook savings accounts C) traveler's checks D) checkable and debitable accounts
When net capital flows are negative,
A) capital inflows are less than capital outflows. B) net foreign investment is negative. C) capital outflows are less than capital inflows. D) A and B are both correct.
Use the concepts of reputation and asymmetric information to explain why some faculty members become less productive after gaining tenure.
What will be an ideal response?
A good that entails relatively high fixed costs associated with the use of knowledge and other information-intensive inputs as key factors of production is
A) a logo good. B) a search good. C) a persuasive good. D) an information product.