Judy has just bought a car that is made in Germany. As far as the U.S. balance of payments is concerned this purchase is a(n)
A. deficit item.
B. special draw.
C. accounting identity.
D. surplus item.
Answer: A
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Western agriculture in the nineteenth century can be characterized by
(a) a rising labor to output ratio. (b) a rising capital to output ratio. (c) the use of marginal land to increase output. (d) a shift to more efficient crops.
The amount by which an additional unit of a good or service increases a consumer's total utility is:
a. marginal bliss. b. marginal benefit. c. marginal utility. d. marginal.
The national debt is:
a. the difference between a nation's exports and imports of goods and services. b. the sum of the personal debt of all citizens in the United States. c. the cumulative effect of all past budget deficits and surpluses of the federal government. d. equal to the current size of the budget deficit.
Suppose in the market for used cars, buyers would be willing to pay $9,000 for a car in good condition, while buyers would have to incur a cost of $3,500 to repair a car in poor condition. If the probability of a car being in bad condition is 0.35, what price would a risk-neutral buyer be willing to pay?
a. $3,925 b. $1,925 c. $7,775 d. $5,850