If government policymakers intervene in foreign exchange markets to cause the domestic currency to appreciate:
A. this would be harmful to exporters.
B. this will benefit all residents of the country.
C. this will be beneficial to exporters.
D. this would be harmful to importers.
Answer: A
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The gap between real GDP per person in Africa and real GDP per person in the United States has been
A) increasing. B) decreasing. C) remaining fairly constant. D) there is no gap in real GDP per person between Africa and the United States.
Complete the following table by indicating the effect each of the following transactions has on U.S. net capital outflow and whether it involves direct investment or portfolio investment.
HINT: Effect on Net Capital Outflow answer choices are Decreased or Increased. The Type of Investment Involved answer choices are Direct Investment or Portfolio Investment.
Refer to the provided supply and demand graph for a product. In the graph, line S is the current supply of this product, while line S1 is the optimal supply from the society's perspective. This figure suggests that there is (are)
A. external costs in the production of this product. B. positive externalities from producing the product. C. external benefits from the production of this product. D. currently an underallocation of resources toward producing this product.
Suppose that when one person consumes a good, it is possible to provide it to others at no additional cost. Such a good is called
a. nonexcludable. b. nonrivalrous. c. a free good. d. a Clarke good.