If a country has saving of $2 trillion and investment of $1.5 trillion, then it has
a. a trade surplus and its net capital outflow = $.5 trillion.
b. a trade surplus and its net capital outflow = -$.5 trillion.
c. a trade deficit and its net capital outflow = $.5 trillion.
d. a trade deficit and its net capital outflow = -$.5 trillion.
a
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In the figure above, with international trade ________ helicopters per year are produced in the United States
A) 360 B) 480 C) 720 D) 240
As actual output falls below the potential level in the short run, which of the following is most likely to occur? a. More resources will become unemployed. b. The price level will increase
c. Real GDP will increase. d. Nominal GDP will remain constant. e. The natural rate of unemployment will fall.
Foreign investment in the U.S. causes the
a. balance on current account to become positive b. sum of the capital and current accounts to be positive c. balance of trade to become negative d. quantity of imported services to increase e. value of the dollar to increase
Big Health Insurance Company believes it is facing an adverse selection problem. What does this mean?
a. Buyers have more information than the company about their own risk status. b. The company has only poor-risk customers selecting their policies. c. The company’s health policies are unappealing to customers, causing them to go elsewhere. d. Buyers have been changing their minds and switching from one kind of policy to another.