If foreign investment in the United States exceeds U.S. investment abroad, there is a ________; and when U.S. investment abroad exceeds foreign investment in the United States, there is ________
A) current account surplus; a current account deficit
B) current account surplus; an official accounts surplus
C) capital and financial account surplus; a capital and financial account deficit
D) capital and financial account deficit; a capital and financial account surplus
C
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Assume consumers eat either rice or pasta for dinner every night. If the price of rice increases, then one would expect to see:
A. an increase in the quantity of pasta demanded. B. a decrease in the demand for pasta. C. a decrease in the quantity of pasta demanded. D. an increase in the demand for pasta.
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
In an ideal organization, when do agents always make decisions in the best interests of their principle?
a. The decision makers have the information necessary to make the decision b. The decision makers have the incentive to make the right decision c. All of the above d. None of the above
Exhibit 10-1 A monopolistic competitive firm
If all firms in the industry are the same as the monopolistic competitive firm shown in this Exhibit 10-1, firms in the long run will:
A. leave the industry. B. earn positive economic profits. C. experience less competition because firms will exit the industry. D. experience competition from new firms that enter the industry.