When there is a cost or benefit that affects someone other than the seller and buyer, then there is
A) a tax.
B) a subsidy.
C) a quantity regulation.
D) a price regulation.
E) an externality.
E
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In 2009, Germany's capital account was -$135 million. This implies that
A) Germany invested more in other countries than those countries invested in Germany. B) Germany's currency must have appreciated during 2009. C) Germany imported more goods from its trading partners than it exported. D) Germany's official settlements account in 2009 must have been positive.
The primary purpose of economics is to understand how people make
A) money. B) goods and services. C) choices. D) a comfortable living.
In the short run, when a firm stops producing it:
A. must be that ATC is lower than market price. B. can avoid earning profits less than zero. C. avoids paying variable costs. D. avoids paying fixed costs.
The following list contains factors that are related to the aggregate demand curve.1)Household expectations 2)Profit expectations 3)Degree of excess capacity 4)Personal income tax rates 5)Exchange rates 6)National income abroad 7)Government spending 8)Household wealth Refer to the above information. Investment spending would most likely be influenced by changes in:
A. 2 and 3. B. 1 and 8. C. 5 and 6. D. 1 and 4.