The balance of payments is zero
A) as an accounting identity.
B) because market forces ensure that this is so.
C) only if the current account balance is zero.
D) only if the capital account balance is zero.
A
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In the case of a negative externality,
A. marginal external costs are greater than marginal private costs. B. marginal external costs are less than marginal private costs. C. marginal external benefits are greater than marginal private benefits. D. marginal external benefits are equal to marginal private costs. E. none of the above
Solutions to the moral hazard in equity contracts include all of the following EXCEPT
A) government regulations to increase information. B) the use of financial intermediaries. C) the use of debt contracts. D) government ownership of resources.
Use the above figure. The profit-maximizing or loss minimizing output and price will be
A) Q1 and P2. B) Q2 and P3. C) Q3 and P3. D) Q4 and P1.
M1 money includes all but which of the following?
a. Checkable deposits b. Savings accounts c. Paper money d. Coins