A current account surplus in the U.S. balance of payments coincides with a ______.
a. financial account deficit
b. financial account surplus
c. balance-of-payments deficit on the current account
d. negative net balance for the balance-of-payments account
a. financial account deficit
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The word "final" in the definition of GDP refers to
A) not counting intermediate goods or services. B) the time period when production took place. C) valuing production at market prices. D) counting the intermediate goods and services used to produce GDP.
The demand for Nike shoes is _________________ than the demand for shoes in general
a. More elastic b. More inelastic c. Less elastic d. Less inelastic
Generally, exchange rates are quoted as a single price of a unit of foreign currency rather than a ratio because:
a. the ratio of the units of home currency to units of foreign currency is always equal to one. b. the denominator is always equal to one. c. the price is fixed by the government. d. the rate is adjustable in increments of 25 basis points.
Does this production function, q = 10L0.5K0.3, experience increasing, decreasing or constant returns to scale?
A) Decreasing because a 100% increase in inputs increases outputs by 80%. B) Increasing because an 80% increase in inputs increases outputs by 100%. C) Decreasing because 0.5 + 0.3 < 1. D) A and C.