If a nation has flexible exchange rates and its current and capital accounts equal zero, then the:
a. Financial account must be positive
b. Financial account can be positive or negative depending on the size of the budget deficit and exchange rate.
c. Reserves account can be positive or negative depending on the size of the budget deficit and exchange rate.
d. Financial account minus the reserves account must equal zero.
.D
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It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China. Critically evaluate this claim.
What will be an ideal response?
The rule that states that the marginal revenue product equal to price does not hold when there are more than two inputs.
Answer the following statement true (T) or false (F)
How did McDonald's attempt to address the cultural differences around the world in selling its product?
What will be an ideal response?
Figure 11-4
Physicians have two types of patients: private patients who pay directly or with insurance, and Medicaid patients whose care is paid for by the state. Physicians must lower prices to attract more private patients, but they can add unlimited Medicaid patients at a constant price. The situation facing Dr. Casey is depicted in Figure 11-4. Units of medical service (say, number of patients x number of visits) are measured on the horizontal axis. How many units of medical service will Dr. Casey deliver to Medicaid patients?
a.
OA
b.
AC
c.
OC
d.
OD