A country experiencing a current account surplus
A. is able to lend internationally.
B. spends more than it earns on its merchandise and service trade, international income payments and receipts and international transfers.
C. must also have had a surplus in its overall payments balance.
D. needs to borrow internationally.
Answer: A
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Which market structure is characterized by the following characteristics? i. A large number of firms compete. ii. Each firm produces a differentiated product. iii. Firms are free to enter and exit
A) perfect competition B) duopoly C) oligopoly D) monopolistic competition E) monopoly
Over the post-war era, poorer countries grew
A) faster. B) slower. C) stayed the same. D) grew faster, then grew slower. E) No general tendency can be found.
Which of the following would happen as the wage rate gradually adjusts following a shock?
a. Nothing will change b. A shift of the production possibilities frontier c. A shift in the short-run aggregate supply curve d. A shift in the aggregate demand curve e. A shift in the long-run aggregate supply curve
The passage of new legislation that imposes much less government regulation of business will most likely:
a. Increase aggregate demand b. Decrease aggregate supply c. Decrease aggregate demand d. Increase aggregate supply