Which of the following does not involve exports and imports?
A. Current account.
B. Capital account.
C. Net exports.
D. Balance of trade.
Answer: B
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If we look at governmental budgets over time using nominal figures, we
a. have a clearer understanding of the real size of the budget b. are able to focus on the real impact of government spending on potential GNP c. tend to overestimate the size of the budgetary growth d. usually underestimate the size of the burden of the debt e. are ignoring what we can learn from nominal data
Which of the following approaches to investing does not rely on fundamental analysis to choose the stocks in your portfolio?
a. Choosing stocks based on research and analysis you do yourself b. Relying on advice from Wall Street analysts c. Buying shares of an actively managed mutual fund d. Buying shares of an index fund that purchases all stocks in a particular stock index
A lighthouse that serves a dangerous coastal area is built. The lighthouse cost $1 million to build and serves 100 ships a month. If the shipping in the area increases so that 200 ships pass by a month, the increase in additional costs of providing the
light to these new ships is A) $1 million. B) $100,000. C) $5,000. D) $0.
What is the effect of an increase in unemployment benefits on the unemployment rate?
What will be an ideal response?