A U.S. bakery buys wheat from Canada and pays for it with US dollars. This transaction
a. increases Canadian net exports, and increases U.S. net capital outflow.
b. increases Canadian net exports, and decreases U.S. net capital outflow.
c. decreases Canadian net exports, and increases U.S. net capital outflow.
d. decreases Canadian net exports, and decreases U.S. net capital outflow.
b
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In economics, risk is said to exist when:
A) the outcome of an activity is not known with certainty. B) the cost of producing a good exceeds its market price. C) net present value of an outcome is positive. D) the probability of an outcome is one.
If policymakers in an open economy want to increase the wealth of their citizens, should they seek to increase saving, or to increase investment? Explain
What will be an ideal response?
Figure 4.3 illustrates the demand for tacos. Assume that tacos are normal goods. An increase in income would bring about a movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D1.
Which of the following characteristics of a competitive market make auction sites such as eBay so popular?
A) There is freedom of entry and exit. B) There are very low transaction costs. C) There are only one or two sellers. D) Buyers and sellers have complete information.