If the value of a nation's merchandise exports exceeds merchandise imports, the nation is running a
a. capital account deficit.
b. capital account surplus.
c. balance of trade surplus.
d. balance of trade deficit.
C
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The table above shows a nation's production possibilities frontier. The opportunity cost of a robot between combination D and E is
A) 1/4 of a pizza. B) 34 pizzas. C) 30 pizzas. D) 4 pizzas. E) undefined because neither point is production efficient.
PPF is the
A) price parity formula. B) possible production function. C) producer's preferred frontier. D) production possibilities frontier.
Which of the following statements best describes the changes in federal spending of the US economy from 1939 to 1949?
a. Between 1939 and 1944 military expenditures increased substantially and civilian-related expenditures remained about the same. b. Between 1939 and 1944 both military and civilian-related expenditures increased substantially. c. Between 1939 and 1944 the production possibilities frontier for military and civilian-related expenditures shifted out. d. Between 1944 and 1949 military expenditures decreased substantially and civilian-related expenditures returned to 1939 levels.
Dino spends his income on two goods, cigars and peppermints. He considers both goods to be normal goods. If Dino's income remains constant and the relative price of cigars decreases, he will purchase:
A. more cigars and fewer peppermints. B. more cigars and more peppermints. C. fewer cigars and more peppermints. D. fewer cigars and fewer peppermints.