Explain the two categories of balance of payments transactions.
What will be an ideal response?
Current account transactions relate to sales and purchases of goods and services. These include goods, services, and unilateral transfers. The financial account consists of transactions involving financial assets. The sum of the current account and the financial account is zero.
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The long-run supply curve for a perfectly competitive, constant-cost industry
A) is found by adding up the marginal cost curves for all firms in the industry. B) is horizontal. C) is upward-sloping. D) is downward-sloping.
Refer to Scenario 3. The average variable cost of producing three units of output is:
A) $15. B) $25. C) $41.67 (approximate). D) $75.
Who was the effectively in charge of the Fed during the early 1930s?
A) Secretary of Treasury B) Head of the Federal Reserve bank of New York C) Comptroller of the Currency D) no one
The substitution effect measures how
a. the quantity demanded of one good is influenced by a change in income, with prices constant b. the quantity demanded of one good is influenced by a change the price of another good c. marginal utility per dollar spent is affected by income changes d. an increase in the price of a good is effectively the same as a reduction in income e. the quantity demanded of one good is influenced by a change in the price of that good, with income constant