If Japan has a current account surplus, then it must:
A. have an offsetting capital account deficit.
B. also have a surplus in its capital account.
C. import more goods than it exports.
D. have a positive balance of payments.
Answer: A
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Refer to Figure 11-18. A curve that connects points A, D, and E is called
A) a total cost line. B) an expansion path. C) an indifference line. D) an input-output curve.
At the profit-maximizing level of output, what is relationship between the total revenue (TR) and total cost (TC) curves?
A) They must intersect, with TC cutting TR from below. B) They must intersect, with TC cutting TR from above. C) They must be tangent to each other. D) They cannot be tangent to each other. E) They must have the same slope.
Most studies indicate that during the last two decades, the wages of union members have been approximately
a. 5 percent higher than the wages of similar nonunion workers. b. 14 to 19 percent higher than the wages of similar nonunion workers. c. 34 to 39 percent higher than the wages of similar nonunion workers. d. 64 to 69 percent higher than the wages of similar nonunion workers.
Opening an industry to international competition tends to:
A. increase the incidence of lazy monopolists. B. force lazy monopolists to increase efficiency. C. increase X-inefficiency. D. raise a monopolist's profit as the price is driven up.