If a nation has a current account surplus and it does not have to make any inpayments or outpayments of official reserves, it must have a:
A. surplus in its capital and financial account.
B. balance of payments deficit.
C. balance of payments surplus.
D. deficit in its capital and financial account.
D. deficit in its capital and financial account.
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The total product curve shows the relationship between total product and
A) cost. B) the quantity of labor. C) the average product. D) the marginal product. E) the marginal cost.
When own-price elasticity lies between 0 and -1, consumer spending decreases when price increases.
Answer the following statement true (T) or false (F)
Suppose the government does not provide an incentive payment to producers under a production quota policy, and the amount that may be produced and sold by firms is limited by law in order to raise the market price to the support price
Do producers still gain surplus value under this version of the production quota policy? A) Yes, they would always achieve a larger producer surplus under this version of the policy B) Yes, as long as the surplus value gained from consumers exceeds the amount of producer surplus lost from production quantities that are no longer produced C) No, they would always face a decrease in producer surplus without the government incentive payment D) No, the change in producer surplus is always negative due to the gains achieved by consumers
Refer to the diagram. The initial demand for and supply of pesos are shown by D 1 and S 1 . Suppose the United States reduces its imports of Mexican goods, shifting its demand for pesos from D 1 to D 2 . Under a system of freely floating exchange rates:
A. gold would flow from Mexico to the United States.
B. the peso price of dollars would rise from B pesos equals $1 to A pesos equals $1.
C. a problem of rationing a shortage of pesos would arise in the United States.
D. the dollar price of pesos would increase to C dollars equals 1 peso.