The capital and financial account records
A) the current value of the balance of payments in U.S. dollars.
B) all the purchases and sales of capital goods in the United States.
C) imports and exports of capital goods.
D) transactions involving trade, interest payments, and net transfers.
E) transactions involving foreign investment in the United States and U.S. investment abroad.
E
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The attribute that distinguishes money from other assets is that only money
A) retains its value during times of inflation. B) is counted in determining the size of an individual's wealth. C) serves as a medium of exchange. D) may be used as collateral for a bank loan.
Refer to Scenario 10.2. Suppose that in addition to the tax, a business license is required to stay in business. The license costs $1000. What is the profit maximizing level of output?
A) 0 B) 90 C) 95 D) 100 E) none of the above
When a 5% increase in price leads to an 8% increase in quantity supplied, supply is relatively inelastic
a. True b. False Indicate whether the statement is true or false
In the country of Bora Bora, consumers buy large quantities of alcohol, tobacco, and coffee. Last year, the prices of these goods each increased by 10 percent. The quantities demanded for these goods fell by 10, 3, and 8 percent, respectively. If the government is thinking about imposing a unit tax on one of these goods, which good should they choose to tax to raise the most tax revenue, and why?
a. alcohol; because the price elasticity is highest b. tobacco; because the price elasticity is lowest c. coffee; because it will have the lowest tax elasticity d. tobacco; because it will have the highest tax elasticity e. alcohol; because the burden of taxation would be more even