Provide a definition of the current account, the capital account, and the cash account. What is the relationship between the three accounts?
What will be an ideal response?
Discussed in the chapter.
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An arrangement that allows buyers and sellers to exchange things is called
A) a market. B) a contract. C) money. D) efficient.
Do economists analyze people's thought processes or do they look at what people actually do?
A) Economists focus only on people's thought processes. B) Economists focus on what people do, not their thought processes. C) An economist's focus is about half-and-half between actions and thought processes. D) Macroeconomists focus on thought processes while microeconomists focus on actions.
Which of the following statements is correct?
a. A decrease of government spending is most effective in the flat part of the SRAS curve. b. An increase in interest rates is most effective in the flat part of the SRAS curve. c. An increase in the money supply is most effective in the steep part of the SRAS curve. d. A tax increase is most effective in the steep part of the SRAS curve.
The figure above shows the demand and cost curves facing a price-setting firm. In profit-maximizing (or loss-minimizing) equilibrium, the price-setting firm earns ________ in total revenue, which is ________ the maximum possible total revenue of ________.
A. $8,000; equal to; $8,000 B. $8,000; more than; $7,500 C. $7,650; less than; $8,000 D. $7,500; less than; $8,000 E. $7,500; equal to; $7,500