If the graph shown represents Stella's budget constraint, and she has income of $48 to spend on these two items, Stella could choose which consumption bundle?
A. Two pairs of earrings and four hairbands
B. One pair of earrings and seven hairbands
C. Three pairs of earrings and six hairbands
D. Four pairs of earrings and eight hairbands
Answer: A
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Suppose the current account of a country is in balance and the official settlements account equals 0. A new transaction occurs so that the current account is now in surplus, but the official settlements account does not change
From this we know that A) the balance of trade is now in surplus. B) the government is running a budget deficit. C) the capital and financial account is now in deficit. D) the government must make official reserve transactions.
Speculators absorb additional risk in futures markets as a result of the actions taken by
A) longs. B) hedgers. C) brokers. D) shorts.
Which of the following is an example of trade policy at the national level?
a. Congress passing legislation to prevent dumping. b. The European Union adopting a common currency c. The World Trade Organization holding a round of negotiations in France. d. The General Agreement on Tariffs and Trade being made.
A utility function
A. shows the relation between prices and a consumer's utility. B. shows the relation between the amount of goods consumed and a consumer's utility. C. shows the relation between income and a consumer's utility. D. all of the above E. none of the above