Distinguish between the balance of payments and the balance of trade
What will be an ideal response?
The balance of payments is a summary record of a country's economic transactions with foreign residents and governments over a year. As such, it takes into consideration all types of transactions. The balance of trade refers only to the value to goods and services bought and sold in the world market. The balance of trade makes up a portion of the balance of payments.
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Use the figure below: 
If good skiing costs $100 per day and horseback riding costs $50 per day, if you have $250 to spend which indifference curve would maximize your utility?
A. Curve A B. Curve B C. Curve C D. None of these curves
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
When firms discuss pricing strategies with each other:
A. it is a violation of antitrust laws. B. it is not a violation of antitrust laws because laws cannot restrict free speech. C. it is a violation of antitrust laws only if the discussion includes punishment strategies. D. it is a violation of antitrust laws only if some firms in the industry are excluded from the discussion.
Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. If the economy is actually at Point C but policy makers think that it is still at Point B, this is an example of
A. response lag. B. economic policies ineffectiveness. C. implementation lag. D. recognition lag.