Jane has just sent a gift that was made in the U.S. to her relatives in Italy. As far as the balance of payments is concerned this gift will
A) have no influence on the balance of payments since it was made in the U.S.
B) be part of the capital account since the gift is a physical item.
C) be considered an export since it has left the U.S.
D) be part of the current account as a unilateral transfer.
D
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Cost-push inflation is caused by:
a. an increase in short-run aggregate supply. b. a decrease in short-run aggregate supply. c. an increase in long-run aggregate supply. d. a decrease in long-run aggregate supply.
In which of the following ways is graph A different from graph B?
a. P1 to P2 is larger in graph B than in graph A.
b. Q1 to Q2 is larger in graph B than in graph A.
c. P1 to P2 is larger in graph A than in graph B.
d. Q1 to Q2 is larger in graph A than in graph B.
The price-taker firm should discontinue production immediately if:
A. the market price exceeds the firm's average total costs. B. the market price is less than the firm's average variable costs. C. the market price is less than the firm's average total costs, but greater than its average variable cost. D. its accounting statement indicates that it is suffering losses.
Some economists argue that free trade is beneficial regardless of the actions of a country's trading partners, including trading partners that heavily protect their home markets
Indicate whether the statement is true or false