The trade balance is
a. the services balance plus the current account balance plus the capital account balance
b. merchandise exports minus merchandise imports
c. the current account balance plus the capital account balance
d. foreign purchases of domestic assets minus domestic purchases of foreign assets
e. the services balance plus the capital account balance
B
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During recessions, unemployment ________ while the budget deficit as a percentage of GDP ________
A) increases; increases B) decreases; increases C) decreases; decreases D) increases; decreases
The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium level of output,
A) resource allocation is efficient. B) resource allocation is inefficient. C) too few tons of fertilizer are produced. D) consumers must pay too high a price for fertilizer.
Carvel advertises a football-shaped ice cream cake for $7; you can buy a second one for only $4 . What do they know about consumer preferences?
a. Consumers would never buy a second ice cream cake. b. Two cakes are worth less to the consumer than one. c. Marginal utility of ice cream cakes diminishes. d. Consumers only value the first cake at $4. e. Consumers value all cakes they eat at $4.
What is the term referring to the situation when a central bank makes short-term loans available in situations of severe financial panic or stress?
a. deposit insurance b. lender of last resort c. reserve insurance d. Fed loans