The case of New Zealand, as described in the text, draws what simple conclusion regarding the country's international debt position?
What will be an ideal response?
Fundamentally, the question is whether or not a country can sustain a current account deficit indefinitely. The conclusion is that, under certain conditions, yes it can.
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A tax on firms for polluting will be most effective in reducing pollution at low cost if the tax
A) is levied on a one-time, lump-sum basis. B) per unit of pollutant is constant. C) per unit of pollutant is lower for low polluting firms. D) per unit of pollutant is proportioned to profits or ability to pay.
If the CPI is currently 202, what does this tell you about inflation between last year and this year?
A) Inflation in the economy between this year and last year was 2%. B) There was deflation in the economy between this year and last year. C) The CPI measures only the level of prices in a given year, not the percentage change in prices from one year to the next. D) Inflation in the economy between this year and last year was 102%.
Suppose that the 12-month interest rates for the United States and the United Kingdom are 7% and 6% respectively, and E = 2.10 $/£. Given this information, what is the expected exchange rate change over the year?
A) 1% B) 4.2% C) 2.1% D) 2.0%
Suppose that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced?
a. They are equal. b. The equilibrium quantity is greater than the socially optimal quantity. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.