Suppose a U.S. resident buys a car from a car maker in Japan. This transaction will:
a. have a negative effect on Japan's balance of trade in merchandise.
b. have a negative effect on the U.S. balance of trade in merchandise.
c. have a positive effect on the U.S. balance of trade in merchandise.
d. bring money into the United States.
e. have no effect on Japan's balance of trade in merchandise.
b
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Industrial production is an example of a:
A) leading indicator. B) coincident indicator. C) lagging indicator. D) none of the above.
From the equation of exchange, if both real income (Y) and the quantity of money (M) double and the price level (P) remains constant, then velocity (V) ________ and nominal income ________
A) remains constant; doubles B) doubles; remains constant C) doubles; doubles D) decreases by 50 percent; quadruples E) none of the above
Suppose MRS does not equal MRT for all consumers. In this case, the economic outcome is not fully efficient because:
A) exchange is inefficient. B) the use of inputs in production is inefficient. C) the mix of outputs in inefficient. D) none of the above
One of the challenges for development economists working in health care is to figure out a way to:
A. force doctors to practice good medicine. B. give incentives to families to make better health care choices. C. decrease the frequency of preventative medicine, such as immunizing children. D. All of these statements are true.