Which of the following statements is true?
A. The balance of payments is always in balance.
B. An increase in exports causes a balance of payments surplus.
C. A decreases in imports causes a balance of payments surplus.
D. A decrease in exports causes a balance of payments deficit.
Answer: A
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How can the concepts of opportunity costs, scarcity and choice be illustrated by the production possibilities curve?
What will be an ideal response?
Which of the following events would decrease producer surplus?
a. Sellers' costs stay the same and the price of the good increases. b. Sellers' costs increase and the price of the good stays the same. c. Sellers' costs decrease and the price of the good increases. d. All of the above are correct.
Which of the following will definitely cause the value of the misery index to increase?
A. Greater stagflation. B. A rightward shift of the aggregate supply curve. C. A leftward shift of the Phillips curve. D. A rightward shift of the aggregate demand curve.
Refer to the information provided in Figure 25.1 below to answer the question(s) that follow.
Figure 25.1Refer to Figure 25.1. The money demand curve will shift from 
to 
if
A. the price level increases. B. interest rates rise. C. interest rates fall. D. nominal income decreases.