What is a balance-of-payments deficit?
What will be an ideal response?
A nation is said to have a balance-of-payments deficit when imbalances in the combined current account and capital and financial account lead to a decrease in official reserves. In this case, there is a net sale of official reserves by a nation’s treasury or central bank to bring the balance of payments into balance. The net sale of official reserves shows up as an addition (+) to the foreign purchases of U.S. assets item because they are a credit or inflow of a nation’s currency. The decrease in official reserves ensures that the balance of payments sum to zero.
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The table above displays the possible outcomes for Bob and Joe, who have been arrested for armed robbery and car theft. Which of the following is TRUE?
A) If Joe confesses, Bob should not confess. B) If Bob confesses, Joe should confess. C) The dominant equilibrium is that Joe and Bob both serve 2 years. D) If Joe does not confess, Bob should not confess.
In the early colonies, private landholdings
a. gradually replaced common ownership. b. occasionally supplemented common ownership. c. were only legalized after 1650. d. were the norm from the very beginning of colonization.
Why do economists consider perfect competition to be the most efficient market structure?
What will be an ideal response?
In the long run when a perfectly competitive firm experiences negative economic profits
A) firms exit the industry, the market supply curve shifts rightward, and the market price falls. B) firms enter the industry, the market supply curve shifts rightward, and the market price falls. C) firms exit the industry, the market supply curve shifts leftward, and the market price rises. D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.