A German publishing company buys an American publishing company based in New York. In the U.S. balance of payments accounts, this transaction directly appears in
A) the official settlements account.
B) the imports part of the current account.
C) the net transfers part of the current account.
D) the capital and financial account.
D
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Suppose it costs a farmer $1.00 to produce 1 unit of corn, $2.10 to produce 2 units of corn, and $3.30 to produce 3 units of corn. What's the average cost of producing 3 units of corn?
A) $1.00 B) $1.10 C) $2.10 D) $3.30
A town engineer comes to the city council with a proposal to install a traffic light at a certain intersection that currently has a stop sign. The benefit of the traffic light is increased safety because the light will reduce the incidence of fatal traffic accidents by 50 percent per year. Which of the following statements is correct?
a. The city council should vote to install the traffic light because the benefits will outweigh the costs. b. The city council should carefully evaluate the benefits of reduced fatalities against only the explicit costs of the light. c. The city council should carefully evaluate the benefits of reduced fatalities against the costs of the light and of the extra time that drivers will spend waiting for a green light. d. The costs will invariably outweigh the benefits.
In the U.S. Steel case, the court ruled that:
A. even though a firm's behavior might be legal, the mere possession of monopoly power was in violation of the Sherman Act. B. only monopolies that unreasonably restrain trade are subject to antitrust action under the Sherman Act. C. when made by dominant firms, tying contracts are illegal, per se. D. the company violated the Clayton Act and therefore should be dissolved into several competing firms.
Payments for capital include investment and profit.
Answer the following statement true (T) or false (F)