If the United States donates footballs to Japan, how is the transaction recorded on the U.S. balance of payments accounts?
A) Decline in merchandise trade; increase in financial account
B) Decline in financial account; increase in merchandise trade
C) Decline in net unilateral transfers; increase in merchandise trade
D) Decline in merchandise trade; increase in net unilateral transfers
C
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. In the principal-agent problem, assigning full liability to the agent gives no incentive for the principal to avoid damages. 2. Transaction costs arise when property rights are nonexistent. 3. If all parties can enter into negotiations, social optimum is achieved with or without a Pigou tax. 4. A free-rider problem occurs when people can share in the benefits of an activity without being forced to contribute to its costs. 5. Court decision involving torts are irrelevant to social welfare.
If a perfectly competitive firm raises the price it charges to consumers, which of the following is the most likely outcome?
A) The firm's total revenue will increase only if the demand for its product is elastic. B) The firm's total revenue will increase only if the demand for its product is inelastic. C) The firm will not sell any output. D) The firm's revenue will not change because some consumers will refuse to pay the higher price.
If long run average costs are constant with respect to output, you have
a. Increasing returns to scale b. Decreasing returns to scale c. Constant returns to scale d. None of the above
Marginal utility measures the increase in total utility that a person derives from consuming one more unit of a good
Indicate whether the statement is true or false