The net balance of payments is
A. The difference between exports and imports.
B. The difference between the current account balance and the capital account balance.
C. The sum of the current account balance and the capital account balance.
D. The sum of the current account balance and the trade account balance.
Answer: C
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It is not surprising to see a rather __________ volume of mergers and acquisitions in the United States given its __________-oriented financial system
A) high; banking B) high; markets C) low; banking D) low; markets
A tax on gasoline encourages people to drive smaller, more fuel-efficient cars. Which principle of economics does this illustrate?
a. People face tradeoffs. b. The cost of something is what you give up to get it. c. Rational people think at the margin. d. People respond to incentives.
If Martina's income increases and, as a result, she chooses to buy more lattés per month at each price, then her demand curve will
a. shift to the right. b. shift to the left. c. not shift; instead, Martina will move along her demand curve downward and to the right. d. not shift; instead, Martina will move along her demand curve upward and to the left.
A price-setting firm faces the following estimated demand and average variable cost functions:Qd = 800,000 - 2,000P + 0.7M + 4,000PRAVC = 500 - 0.03Q + 0.000001Q2where Qd is the quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $53. Total fixed cost is $2,600,000. What is the estimated demand function for the firm?
A. Qd = 800,000 - 4,000P B. Qd = 800,000 - 500P C. Qd = 1,040,000 - 2,000P D. Qd = 1,600,000 - 2,000P