A consumer maximizes utility when the marginal utilities of all goods
a. having positive money prices that are equal to zero
b. are equal
c. are maximized
d. are equal to the opportunity costs for all goods that are considered necessities
e. are exactly proportional to their market prices
E
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Debit entries on the Balance of Payments are the entries that would
A) mean a loss of foreign exchange. B) bring foreign exchange into the country. C) indicate a surplus exists. D) exist at the bottom line after all accounts are totaled.
Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: The president of the United States decides to support the dollar by purchasing dollars with U.S. holdings of foreign currencies.
A. a. B. b. C. c. D. d.
Refer to the following graph to answer the question:
Suppose price rises from $90 to $110. Using representative arrows, the quantity effect is a relatively ________ (short, long) arrow pointing ________ (upward, downward).
A. short; upward B. short; downward C. long; downward D. long; upward
A negative value for the U.S. official reserve assets line in the balance of payments accounts means that
A. the U.S. central bank has decreased its holdings of foreign reserve assets. B. the U.S. central bank has increased its holdings of foreign reserve assets. C. U.S. residents bought more gold from foreigners than they sold. D. U.S. residents have sold more gold to foreigners than they bought.