Answer the following statement(s) true (T) or false (F)
1. When U.S. tourists go abroad, their use of hotels and other services is recorded in service exports in the current account.
2. A current account deficit in the U.S. balance of payments coincides with a financial account surplus.
3. If a U.S. resident obtains a loan from a foreign bank, the transaction is recorded in the financial account of the U.S. balance of payments.
4. When the U.S. balance of payments is zero, then the number of U.S. dollars demanded equals the number of U.S. dollars supplied.
5. A consumer in a foreign country who is buying U.S. goods must sell U.S. dollars to obtain foreign currency to pay for those goods.
1. False
2. True
3. True
4. True
5. False
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Give 3 reasons for deviations from IRP. Do these deviations indicate unexploited profit opportunities for investors?
What will be an ideal response?
The goal of equity is fundamentally a positive issue
a. True b. False
Liberalism suggests that public policies should aim to
a. maximize the sum of utility of everyone in society. b. maximize the well-being of the average person in society. c. maximize the well-being of the worst-off person in society. d. minimize the difference between the utility of the best-off person in the society and the utility of the worst-off person in society.
Carson and Fran are both thrill seekers. Carson has health insurance and Fran does not. One can predict that:
A. Carson's health insurance will not affect Carson's behavior. B. Carson and Fran will participate in the same number of dangerous activities. C. Carson will engage in fewer dangerous activities. D. Fran will engage in fewer dangerous activities.