Suppose a country has a current account surplus and that there is no intervention by finance ministries or central banks. This current account surplus indicates that the country has
A. a surplus in its financial account.
B. the official reserve transactions balance is positive.
C. the official reserve transactions balance is negative.
D. a deficit in its financial account.
Answer: D
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Self-interest makes cartels unstable for all of the following reasons except which one?
A) Each firm has an incentive to be the whistle-blower. B) Each firm has the incentive to produce more than the agreed upon quantity. C) Each firm has the incentive to lower their costs by producing less than the agreed upon quantity. D) Each firm has an incentive to be the first to report and confess cartel behavior.
An appreciation of the exchange value of the U.S. dollar would:
a. increase the dollar prices of U.S. imports and the foreign cost of exports from the U.S b. decrease the dollar prices of U.S. imports and the foreign cost of exports from the U.S. c. increase the dollar prices of U.S. imports, but decrease the foreign cost of exports from the U.S. d. decrease the dollar prices of U.S. imports, but increase the foreign cost of exports from the U.S.
A market system is not considered an effective way of controlling self-interest
a. True b. False Indicate whether the statement is true or false
Jody has purchased a non-refundable $75 ticket to attend a Miley Cyrus concert on Friday night. Subsequently, she is asked to go to out dinner at no expense to her. If she uses cost-benefit analysis to choose between going to the concert and going out to dinner, the opportunity cost of going out to dinner should include:
A. the cost of the ticket plus the entertainment value of the concert. B. only the cost of concert ticket. C. only the entertainment value of the concert. D. neither the cost of the ticket nor the entertainment value of the concert.