In a given year, the value of U.S. foreign exchange transactions ________
A) are roughly equal to the value of all U.S. export and import transactions
B) cannot be calculated using nominal exchange rates
C) are relatively small in comparison with the value of U.S. export and import transactions
D) are approximately 25 times greater than the value of U.S. export and import transactions
D
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Suppose a market is currently served by an incumbent firm. If a potential entrant can enter prior to the incumbent firm announcing its output (or price), the entrant will enter the market and force the incumbent to compete.
Answer the following statement true (T) or false (F)
All of the following are characteristics of stock except
A) stock does not represent a promise to repay a fixed amount of funds. B) stock promises to repay a fixed amount to of funds to stock owners. C) stock represents ownership in a firm. D) dividends paid to owners of stock represent a firm's profits.
The income effect indicates that:
A) a rise in money income will cause consumers to buy smaller quantities of normal goods. B) when the price of a product falls, the lower price will induce the consumer to buy more of that product now that it is relatively cheaper. C) consumers should substitute among various products until the marginal utility from the last unit of each product purchased is the same. D) when the price of a product falls, a consumer will be able to buy more of it with a specific money income.
If the United States has a trade deficit, this means that
A. The U.S. economy produces more than it consumes. B. Exports exceed imports. C. Trade activity is limited to just a few goods. D. The trade balance is negative.