Answer the question on the basis of the following balance of payments data for the hypothetical nation of Econland. All figures are in billions of dollars.
(1) Goods exports +$220
(2) Goods imports -328
(3) Exports of services +54
(4) Imports of services -55
(5) Net investment income +18
(6) Net transfers -11
(7) Capital account -1
(8) Foreign purchases of Econland assets +124
(9) Econland purchases of foreign assets -21
Refer to the table above. Econland's balance on the current account shows a:
A. Deficit of $91 billion
B. Deficit of $102 billion
C. Deficit of $109 billion
D. Surplus of $109 billion
B. Deficit of $102 billion
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Use the following graph to answer the next question.
The graph shows the supply and demand for money where Dm1, Dm2, and Dm3 represent different demands for money and Sm1, Sm2, and Sm3 represent different levels of the money supply. The initial equilibrium point is A. What will be the new equilibrium point following a decrease in the transactions demand for money?
A. I B. B C. E D. F
If the market price of oats is $2.5 per bushel and a farmer decides to sell at $2.8 per bushel, he is likely to sell:
a. more than 5 bushels per day. b. more than 10 bushels per day. c. less than 5 bushels per day. d. 10 bushels per day. e. nothing.
Economic reasoning predicts that there will be strong pressures to make real-world markets perfectly competitive.
Answer the following statement true (T) or false (F)
A proprietorship is
A) a business with annual sales of less than $50,000 a year. B) a business owned by one individual that employs 10 or fewer workers, and has been in business less than 15 years. C) a business owned by one individual who receives the profits and is legally responsible for the debts of the firm. D) a form of business in which the stock of the company is closely held by members of one family.