A quota sets the maximum amount of a good that is permitted into a country.
Answer the following statement true (T) or false (F)
True
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The table above gives some of the balance of payments accounts of the United States in 2019
a. What is the current account balance? b. What is the capital and financial account balance? c. What is the official settlements account balance? d. What is the balance of all account payments?
Suppose the two countries can trade shares in the ownership of their perspective assets. Further, assume that a Home owner of a 10 percent share in Foreign land
He will receive 10 percent share in Foreign land, and thus receives 10 percent of the annual Foreign kiwi fruit harvest. Further assume that a Foreign owner of a 10 percent share in Home land is permitted. In this case, a Foreigner is entitled to 10 percent of the Home harvest. Calculate the expected value of kiwi fruit for each investor. Is the investor better off?
Real gross domestic product (GDP) increases if
a. current prices increase b. current quantities increase c. current prices are constant d. nominal GDP increases e. nominal GDP decreases
When the demand for coffee increases, ceteris paribus, the equilibrium price will also increase because
A. A shortage exists at the old equilibrium price. B. The market supply and demand curves do not intersect. C. Market demand must be upward-sloping. D. There must be a surplus of the good.