What "balances" in the Balance of Payments accounting system are:
A. the physical and monetary direct transfers among individuals.
B. the current account and the capital account.
C. aggregate consumption and government spending.
D. physical investment and ephemeral investment.
Answer: B
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Voting power in the IMF is determined by
A) the quota subscription size. B) the population size of member states. C) the size of the member nation's trade surplus. D) the length of membershi
In a centrally planned economy, the concept of marginal cost
A) is important if planners want to achieve their objectives at the lowest possible cost. B) is irrelevant because resources can be obtained by government decree. C) is irrelevant because socialist firms do not have to earn profits. D) is irrelevant if industries can be subsidized.
Which monetary policy tool is considered an expansionary tool?
(A) Decreasing the discount rate. (B) Cutting taxes. (C) Increasing the reserve requirements. (D) Increasing government spending.
Related to the Economics in Practice on p. 550: In the simple "Keynesian" view, maximum output is not defined by the
A. current capital stock. B. existing state of technology. C. existing labor force. D. level of consumption.