A U.S. family flies from Boston to Shanghai on a China Airlines plane. This transaction is
A) considered an export of service in the U.S balance of payment accounts.
B) a deficit item in the balance of payment accounts of China.
C) Both of the above are correct.
D) none of the above.
D
You might also like to view...
One of the more unique aspects of NAFTA compared with other preferential trade arrangements is the fact that the NAFTA countries have
A) similar cultures. B) fixed exchange rates. C) common borders. D) very different standards of living.
Suppose the Fed announced that it has chosen to accept a temporary period of above-target inflation. Assuming that the announcement is seen as credible, this will tend to increase inflationary expectations, which will result in
A) the AD curve shifting to the right. B) the AD curve shifting to the left. C) the AS curve shifting to the right. D) the AS curve shifting to the left.
Which of the following would NOT cause the costs in a monopolistically competitive industry to be higher than those in a perfectly competitive industry?
A. A large number of competitors B. Advertising expenditures C. Marketing costs necessary to differentiate a product D. The ability to control the price of the product so costs can be allowed to rise
Rebel Sole is a rapidly expanding shoe company. The following is the demand estimate for its popular shoes. The estimate was done using 40 observations.
Q = 10 -10 P + 4 A +0.42/+ 0.25Py (3) (1.8) (0.7) (0.1) (0.1) F = 93, s = 6, R2 = 93% Q is quantity sold (in thousands), P is shoe price, A is advertising expenditure (in thousands), the numbers in parentheses are standard errors. I is disposable income per capita (thousands of dollars), and Py is the price of related goods. a. Evaluate the model based on F, R². b. Test the significance of Py c. If P=$5, A = $30,000, I = 50,000, and Py = $6, calculate advertising elasticity. d. Given the information in c. above, calculate the 95% confidence interval for Q.