The ________ always equals zero
A) sum of capital and financial account plus official settlements account
B) sum of current account plus capital and financial account
C) sum of current account plus official settlements account
D) sum of current account plus capital and financial account plus official settlements account
E) official settlements account
D
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Consider points A, B, C, and D shown in the accompanying Edgeworth box diagram.
(i) Which of these points do Bart and Lisa both prefer to the endowment point O?
(ii) Which of these points are Pareto optimal?
(iii) Which of these points are competitive equilibria? Justify your answers.
A demand curve will shift out for any of the following reasons except that:
a. preference for a good increases. b. price of a substitute falls. c. income rises. d. price of a complement falls.
The price elasticity of a horizontal demand curve is always
a. infinitely large. b. zero. c. one. d. increasing as price increases.
If two variables are inversely related, then as the value of one variable:
A. increases, the value of the other may either increase or decrease. B. decreases, the value of the other decreases. C. increases, the value of the other decreases. D. increases, the value of the other increases.