When a U.S. restaurant purchases French wine and the French wine company uses the proceeds to buy U.S. government debt, U.S. ________ and there is a capital ________ the United States.
A. exports increase; outflow from
B. imports increase; inflow to
C. imports decrease; inflow to
D. imports increase; outflow from
Answer: B
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To calculate value added, we need to subtract
A) only the cost of domestically-produced intermediate inputs. B) only the cost of foreign-produced intermediate inputs. C) the cost of domestic- and foreign-produced intermediate inputs. D) total imports.
Refer to the above table. Given the demand and cost schedules, what is the profit maximizing quantity for this monopolist?
A) 14 B) 19 C) 25 D) 30
Whenever the ratio of marginal products to input prices differs across inputs,
A. no change will necessarily follow because the process could still be at peak efficiency. B. a firm's costs could be reduced by shifting input usage toward the input with the lower marginal product to price ratio. C. the marginal products of inputs will adjust as input combinations change to correct for the inefficiency. D. the costs of the inputs adjust to bring the marginal product ratios and cost ratios together.
How can a buyer of car insurance help in reducing the effects of adverse selection?
What will be an ideal response?