A current account deficit in a nation's balance of payments accounts implies that
a. imports are equal to exports.
b. exports exceed imports.
c. expenditures are more than income.
d. income is more than expenditures.
C
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Technological change ________ sustained increases in standards of living.
A. is necessary for B. is helpful, but not necessary, for C. is an obstacle to D. always leads directly
Describe how the government should set a monopolist's price to ensure allocative efficiency. What is the problem with setting the price at this level?
What will be an ideal response?
Which of the following is an example of a Pigovian tax?
A) a tax imposed on a utility that internalizes the cost of externalities caused by the utility B) payments by utilities to obtain tradable emission allowances C) payments for licenses to pollute D) a payroll tax
How did the collapse of the housing bubble cause a contraction in output?
A. Because banks were unwilling to lend, many businesses were suddenly unable to access credit for their day-to-day needs. B. When homeowners lost value in their homes, they stopped saving, which reduced banks' ability to lend. C. Because consumers lost confidence in the banking industry, they stopped depositing money, so banks could no longer lend. D. When banks wanted to make loans, but couldn’t find any credit-worthy customers to loan to.