A balance-of-trade surplus exists
A. if the dollar value of exports exceeds the dollar value of imports.
B. if the dollar value of imported capital exceeds the dollar value of exports.
C. only if there is relative price inflation domestically.
D. only if full employment exists domestically.
A. if the dollar value of exports exceeds the dollar value of imports.
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The optimum level of pollution emissions
A) is zero. B) occurs where the marginal external benefit is zero. C) occurs where no damage to the environment is being done. D) occurs where the marginal external benefit equals the marginal external cost. E) occurs where the marginal external cost equals the marginal cost of abatement.
The changes contained in the 1986 and 1993 tax reforms
A. Reduced the variation in the nominal tax rates. B. Resulted in a top marginal tax bracket of 85 percent. C. Increased the variation in the effective tax rates. D. Broadened the tax base and also raised tax rates.
Under a system of freely flexible (floating) exchange rates an American trade deficit with Mexico will tend to cause
A. the United States government to ration pesos to American importers. B. a flow of gold from the United States to Mexico. C. an increase in the peso price of dollars. D. an increase in the dollar price of pesos.
The Aristocrat Corporation has taken out a loan to buy manufacturing equipment. The loan represents ________ for the company
A) an asset B) a liability C) a bond D) equity