If the U.S. purchased $100 billion in foreign assets and foreigners purchased $50 billion of U.S. assets, which of the following is true?
a. Net exports equal -$50 billion.
b. Exports total $100 billion.
c. There is a trade deficit.
d. Net exports equal $50 billion.
e. Imports total $50 billion.
D
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When a business is considered by law to be a legal entity, it is known as a
A) partnership. B) conglomerate. C) corporation. D) proprietorship.
A decrease in oil prices is considered a demand shock because it would lead to a shift of the aggregate demand curve
a. True b. False
An example of direct stock ownership is when a person
a. pays into a pension fund that buys stocks b. puts money into an insurance company that buys stocks c. invests money in a mutual fund that buys stocks d. asks a stockbroker to buy stocks for him or her e. puts funds into a trust fund that buys stocks
Which of the following is most consistent with the basic postulate of economics: changes in incentives exert a predictable impact on human behavior?
A) People will consume more beef if the price increases from $1 to $2 per pound. B) Farmers produce fewer bushels of wheat in response to an increase in the price of wheat. C) People will buy less gas if the price of gas increases by $0.50 per gallon. D) People will buy more milk at a price of $3 per gallon than at $2 per gallon.