If Australia purchases $200,000 of oil from Saudi Arabia, this would mean ________.
A. Australia's balance of payments is $200,000
B. there is a credit in Australia's current account
C. the change in Australia's capital and financial accounts must be zero
D. the sum of the financial and capital accounts in Australia must increase by $200,000
Answer: D
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Refer to the figure above. This country has comparative advantage in
A) X. B) Y. C) both X and Y. D) Can't tell without more information.
The circular flow model shows the flow of: a. money in the economy
b. financial assets in the economy. c. goods and services in the product market. d. resources and money in the economy. e. resources through the resource markets and their allocation in the product market.
Steven Landsburg has suggested that Scrooge, a character invented by Charles Dickens, was not really so bad. What could Landsburg be suggesting would happen in the market for loanable funds if all the misers of the world sold their assets and gave the money to the poor?
A. Demand would shift right, causing interest rates to rise. B. Demand would shift left, causing investment to fall. C. Supply would shift left, causing investment to fall. D. Supply would shift right, causing interest rates to rise.
Refer to the data provided in Table 9.2 below to answer the question(s) that follow.
Table 9.2
Refer to Table 9.2. If the market price is $20, then to maximize profits this firm should produce
A. zero units of output. B. one unit of output. C. two units of output. D. four units of output.