In a small open economy, when exports exceed imports, all of the following are true EXCEPT
A) net capital outflows are positive.
B) net exports are positive.
C) domestic investment exceeds domestic saving.
D) domestic output exceeds spending.
C
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The main problem with securitization is that
A) governments are no longer able to repackage bank assets. B) securitized banks grow too large and create oligopolies. C) There is no problem. Governments can still get an accurate picture of global financial flows by simply examining bank balance sheets. D) governments are not able to monitor bank assets or to asses a bank's risk to the soundness of the international banking system. E) the bank assets are not marketable.
The difference between short-run and long-run cost is that in the long run,
a. there are shortages of labor that can restrict output b. only labor can be changed to increase or decrease production c. fixed factors of production have already been chosen d. there are no diseconomies of scale e. all factors of production are variable
When economists say scarcity, they mean:
A. there are only a limited number of consumers who would be interested in purchasing goods. B. the human desire for goods exceeds the available supply of time, goods and resources. C. most people in poorer countries do not have enough goods. D. goods are so expensive that only the rich can afford it.
Exhibit 7-18 A typical firm in a perfectly competitive market
?
As shown in Exhibit 7-18, the perfectly competitive firm is in long-run equilibrium at a price of:
A. $100. B. $200. C. $300. D. $400.