What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.) U.S. residents purchase Mexican products and pay for them with U.S. dollars
a. Debit the U.S. financial account; credit the U.S. current account.
b. Credit the U.S. financial account; debit the U.S. current account.
c. Debit the U.S. financial account; credit the U.S. financial account.
d. Credit the U.S. financial account; debit the U.S. financial account.
e. Credit the U.S. financial account; debit the U.S. net errors and omissions account.
.B
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Which of the following contracts contain vertical restrictions that limit the transacting parties' choices but create economic value?
a. An agreement between firms to jointly invest in research and development. b. A franchise contract specifying exclusive territory of operation. c. A contract amongst competitive firms on an uniform pricing strategy. d. A collusion between two oligopoly firms specifying individual production.
Define each of the symbols and explain the meaning of M V = P Y
M1 is comprised of currency held outside banks + traveler's checks + __________
A) credit cards B) savings deposits C) gold D) checkable deposits E) money market mutual funds
Which of the following is true concerning negative externalities?
A. Perfect competition is better than monopoly from the viewpoint of society even in the presence of negative externalities. B. With negative externalities, a monopoly will always produce an output level less than is socially efficient. C. Firms tend to produce more than the efficient level of output. D. Society gains because firms do not pay the external costs of production.