Which of the following is included in both the balance of trade and the balance of payments?
A) exports
B) earnings on domestic assets owned by foreign residents
C) international capital movements
D) earnings by domestic residents on assets located abroad
A
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A single-price monopoly is producing at an output level where marginal revenue is $15, marginal cost is $13, and price is $20. This monopoly is
A) not maximizing its profit and should decrease output to increase its profit. B) not maximizing its profit and should increase output to increase its profit. C) maximizing its profit but should shut down. D) maximizing its profit and should not shut down. E) maximizing its profit but still should decrease output to earn even more profit.
The supply curve of a good is highly elastic when
A) additional resources can be attracted into its production by the prospect of a slightly higher reward. B) its marginal supply cost is highly sensitive to changes in demand. C) marginal cost is very low. D) marginal cost rises steeply as the quantity supplied increases. E) the demand for the good is greater than the supply.
A price ceiling imposed on a good that is below the equilibrium price will result in a shortage of that good
a. True b. False Indicate whether the statement is true or false
Why do airlines tend to lower ticket prices in the winter?
a. Supply is relatively variable, and a drop in demand lowers equilibrium price. b. Demand is relatively variable, and a drop in supply lowers equilibrium price. c. A drop in both supply and demand lowers equilibrium price. d. Supply is relatively fixed, and a drop in demand lowers equilibrium price. e. Demand is relatively fixed, and a drop in supply lowers equilibrium price.