The balance of payments is:
A. the accounting of trade in financial assets.
B. the accounting of trade in goods and capital.
C. positive when a country has a trade deficit.
D. negative when a country has a trade surplus.
B. the accounting of trade in goods and capital.
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What is an inferior good?
A) a product of low quality that we do not want to purchase B) a product for which demand increases when income increases, and demand decreases when income decreases C) a product for which demand increases when income decreases, and demand decreases when income increases D) a product that is complementary E) a product that is a substitute for another, better good
A temporary supply shock that raises prices
A) will cause the real interest rate to rise in the long run. B) has no long-run impact on inflation and output. C) causes output to fall in the long run. D) causes inflation to rise in the long run.
The crucial incentive to produce new ideas comes from
A) patents and copyrights. B) international trade. C) rising population growth. D) shortages of physical and human capital. E) government economic guidance.
Which of the following conditions distinguishes the monopolistic competitor from the monopolist?
a. profit-maximizing rule b. downward slope of demand curve c. entry of rivals d. short-run economic profits