If there is a trade deficit, which of the following is true?
A. The current account balance could be positive, negative, or zero.
B. There will be a current account deficit.
C. There will be a financial account surplus.
D. There will be a current account surplus.
Ans: A. The current account balance could be positive, negative, or zero.
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When the marginal benefit and marginal cost of sodas are equal, then
A) the production of sodas might be allocatively efficient but it is definitely production inefficient. B) the allocatively inefficient amount of sodas is being produced. C) more sodas should be produced to reach the allocatively efficient quantity. D) fewer sodas should be produced to reach the allocatively efficient quantity. E) the allocatively efficient amount of sodas is being produced.
How is the use of leverage a "double-edged sword"?
What will be an ideal response?
If the average productivity of labor equals the marginal productivity of labor, then
A) the average productivity of labor is at a maximum. B) the marginal productivity of labor is at a maximum. C) Both A and B above. D) Neither A nor B above.
If adopted by a firm, a labor-saving piece of technology is one that would:
A. decrease labor supply. B. decrease labor demand. C. increase labor supply. D. increase labor demand.