If the current account is in deficit, we know that
A) the merchandise trade balance is also in deficit.
B) the merchandise trade balance is in surplus.
C) the financial account is in surplus.
D) there is a statistical discrepancy in the surplus.
Answer: C
You might also like to view...
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Point c is Pareto efficient because
A) the MRS's are equal. B) the indifference curves are tangent. C) no mutual gains from trade exist. D) All of the above.
The circular flow model shows that: a. households are on the demand side of the resource market
b. firms are on the demand side of both the product and resource markets. c. households are on the supply side of the resource market and the demand side of the product market. d. firms and governments are on the supply side of the loanable funds market. e. governments are on the demand side of the product market and the supply side of the resource market.
In a two good, two-country world, a country has a comparative advantage in any good for which it has a:
a. lower absolute cost than the other country. b. lower opportunity cost than the other country. c. higher absolute cost than the other country. d. higher opportunity cost than the other country.
Which of the following is not an example of a moral hazard problem?
a. A manager stays late one evening so that her employee can leave early to attend his child's music recital. b. A small child takes an extra cookie from the cookie jar when he thinks his mom isn't watching him closely. c. An employee plays solitaire on her computer at 4:30 p.m. on a Friday when her boss has left for the day. d. A customer whose new eyeglasses come with a "60-day insurance policy in case of breakage" leaves her glasses out where her new puppy can chew on them.