A country imports $20 billion worth of goods and services and exports $15 billion worth of goods and services. What is its net capital outflow?
a. $5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets
b. $5 billion, so foreigners' purchases of domestic assets exceed its resident's purchases of foreign assets
c. -$5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets
d. -$5 billion, so foreigners' purchases of domestic assets exceed its residents' purchases of foreign assets
d
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Refer to the scenario above. The nominal GDP of the country for Year 2 was ________
A) $180,000 B) $174,000 C) $1,920,000 D) $2,510,000
You and your roommate go to a Sunday brunch at the local restaurant. All you can eat for $4.95. You enjoyed your meal. Your roommate didn't care for it at all. Each of you paid your bill in full. Who incurred a sunk cost?
A) Both you and your roommate B) Only you C) Only your roommate D) Neither of you
The Three Key Federal Reserve Entities
What will be an ideal response?
If one is on the contract curve
A. further beneficial trades can occur. B. no further voluntary trade will occur. C. the indifference curves of both consumers are crossing. D. the allocation is not Pareto optimal.