Whenever there is a surplus in the current account, the capital account:
a. will be negative
b. will be positive.
c. will be zero.
d. could be negative, positive, or zero.
a
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Internal economies of scale means that
A) firms are experiencing lower average production costs due to a geographical concentration of firms in their industry that make it cheaper and easier to hire highly specialized workers and inputs. B) firms will have lower profits after international trade begins, because costs will be higher than when they just focused on the domestic market. C) consumers will have less choices once trade begins, because firms will be squeezed out of the market. D) simply expanding the size of the market the firm serves reduces overall per unit costs, since the firm can spread costs over more output.
Refer to the above figure. A price control has been set which has led to a surplus. This means that a
A) price ceiling has been set at P1. B) price floor has been set at P1. C) price ceiling has been set at P2. D) price floor has been set at P2.
Over the air television signals are ____________ ; television signals available through cable are
a. Public goods, public goods b. Public goods, common property resources c. Private goods, private goods d. Common property resource, private goods
If, as some economists believe, changes in technology over recent decades have brought about changes in labor markets, then those changes likely have resulted in
a. reduced emphasis on compensating differentials as an explanation for wage differences. b. a reduced emphasis on human-capital differences among workers as an explanation for wage differences. c. a narrowing of the earnings gap between high-skilled workers and low-skilled workers. d. a widening of the earnings gap between high-skilled workers and low-skilled workers.