Deficits and surpluses in the balance of payments are eliminated by ____ in a pure flexible exchange rate system
a. the market mechanism
b. financial borrowings
c. reserve movements
d. changes in fiscal and monetary policies
The correct answer is a. the market mechanism
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For many years the Aluminum Company of America (Alcoa) controlled most of the world's supply of high quality bauxite, the ore needed to produce aluminum. What type of entry barrier was responsible for Alcoa's position in the aluminum industry?
A) ownership of a key input B) a patent on the manufacture of aluminum C) economies of scale D) a government-imposed barrier
To anticipate what the economy is going to do next the government will look at:
a) Lagging indicators b) Flashing indicators c) Coincidental indicators d) Leading indicators
A firm will stay in business if _________ are greater than _________; a firm will go out of business if _________ are greater than __________.
Fill in the blank(s) with the appropriate word(s).
As shown in the figure above, the rent ceiling
A) decreases consumer surplus. B) increases producer surplus. C) decreases deadweight loss. D) increases the quantity of housing rented. E) is efficient.