Suppose there was a substantial increase in political instability in the rest of the world. What would be the effects on the U.S. current account? Explain
What will be an ideal response?
Increased instability in the rest of the world would lead to capital flight out of the unstable areas. This will mean the capital account balance will be more in surplus and the current account balance more in deficit.
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To understand how poverty, inequality, and discrimination affect the economy, __________ analysis is used, and _________ analysis is used to address whether the government should try to reduce inequality in the name of social justice.
A. positive; objective B. subjective; normative C. normative; positive D. positive; normative
After adjusting for inflation, over time the prices of most natural resources have been
a. steady or falling, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. b. steady or falling, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing. c. rising, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. d. rising, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing.
Use cost benefit analysis to explain the decision whether or not to attend college. Why do some people choose not to attend college?
What will be an ideal response?
Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000. What is her accounting profit?
A) $17,000 B) $22,000 C) $47,000 D) $64,000