The balance of trade is measured by which of the following expressions?
a. The value of exported goods and services minus the value of imported goods and services
b. The value of income receipts on investments minus income payments on investments
c. The value of goods exports minus the value of goods imports
d. The value of government spending minus the value of all taxes received
e. The balance on capital account plus the balance on current account
c
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Between September 2009 and September 2010, the recovery of private inventories, as shown in Figure 19.1, was far stronger than the overall economy's recovery from the Great Recession. Which is the most reasonable inference?
A) Persistently weak aggregate demand gave producers no alternative but to place current output into storage. B) Businesses overestimated the strength of the recovery, which lead to overstocking of inventories. C) Financial constraints had forced businesses to contract inventories by more than they otherwise would have chosen. The period beginning in September 2009 reflects the attempt by businesses to correct this. D) Generally poor weather conditions in the final months of the year in the northern hemisphere make it less costly to store goods than to transport them to consumers.
If an individual's budget constraint shifts, the individual's changes in consumption can be broken down into _____ and _____ effects
a. budget; consumption b. income; substitution c. utility; indifference d. wealth; savings
In a barter system, we would expect to see
A) many different units of money. B) money and goods exchanged for each other. C) wide-spread financial institutions. D) goods traded directly for other goods and services.
Why do environmentalists worry about faster economic growth? Economists concede that faster growth is not always better. Why?
What will be an ideal response?