Economic theory shows that the current account deficit is always equal to the capital account surplus. This means that
a. the federal budget must always be in balance.
b. when a country exports more goods and services than it imports, it also imports assets equal to the difference.
c. current account deficits should be avoided.
d. trade deficits tend to be eliminated automatically.
b
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Which of the following occurs in the factor market?
A) households exchange resources for goods and services. B) firms exchange money for resources. C) firms exchange goods and services for resources. D) households exchange money for goods and services.
Advertising attempts to influence which of the following?
a. prices of other goods b. technology c. consumers' incomes d. consumers' tastes e. supply
One reason that many have not accepted Keynes' views about how the government should respond to economic downturns is that:
A. Keynes' arguments run often counter to popular economic intuition. B. few economists are familiar with Keynes' work. C. the debate has little to no policy relevance. D. no economists believe that economic stimulus measures actually work.
Refer to the demand and supply diagram that relates to the health care market. If suppliers provide whatever quantity of health care is demanded, health care insurance causes:
A. resources to be underallocated to the health care industry.
B. resources to be overallocated to the health care industry.
C. health care to be underconsumed.
D. the price of health care to the insured to be higher than the market price.