Persistent negative current account balances will lead to ____
a. c and d
b. d and e
c. budget deficits
d. appreciation of foreign currency
e. depreciation of domestic currency
b
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The accompany diagram shows the market for gasoline, in which there are 1,000 consumers. Gasoline can be produced at a constant marginal cost of $2 per gallon. When the market is in equilibrium, the average consumer uses 15 gallons of gasoline per week.
Suppose a war breaks out, temporarily limiting the amount of gasoline available for civilian use to 10,000 gallons per week. In the interest of fairness, the government allocates 10 gallons per week to each consumer, taxes each consumer $20 per week, and forbids barter in gasoline. Will the shaded area in the diagram accurately measure the loss in consumers' surplus? Why or why not?
The time and money spent by a monopoly firm on lobbying for favorable government policies is called
a. the capitalized value of the firm b. limit pricing c. rent-seeking activity d. administered pricing e. implicit cost
Refer to the following table which gives the demand and cost data for a price-setting firm: 
What is the profit-maximizing price?
A. $18 B. $19 C. $16 D. $17 E. $15
Trade will be beneficial for a nation with a comparative advantage in producing a certain product.
Answer the following statement true (T) or false (F)