A balance-of-payments surplus can be reduced with
A. Increased tariffs and quotas on foreign goods.
B. Increased government spending.
C. Increased taxes.
D. Contractionary monetary policy.
Answer: B
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All of the following are resources EXCEPT
A) doctors because they perform services. B) the land the Statue of Liberty sits on. C) the computer in the student computer lab. D) money.
For the monopolistically competitive firm, the demand curve it faces will be steeper the:
A. more easily the good can be substituted. B. less easily the good can be substituted. C. more complement goods are available. D. less complement goods are available.
The demand for video recorders has been estimated to be linear and given by the demand relation Qv = 145 ? 3.2Pv + 7M ? 0.95Pf ? 39Pm, where Qv is the quantity of video recorders, Pf denotes the price of video recorder film, Pm is the price of attending a movie, Pv is the price of video recorders, and M is income. Based on the estimated demand equation we can conclude:
A. video recorders are normal goods and the demand for video recorders is inelastic. B. video recorders are normal goods and video recorder film is a complement for video recorders. C. the demand for video recorders is inelastic. D. video recorders are normal goods.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.