The record of all transactions with foreign nations that involve the exchange of merchandise goods and services or unilateral gifts is called the
a. capital account.
b. current account.
c. balance of trade.
d. balance of payments.
B
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Using Scenario 1, calculate the total cost of pollution when both steel companies are allowed to pollute only one million gallons of thermal water each and the right is not transferable or tradable
What will be an ideal response?
“Protection” is designed to help
A. firms whose relative inefficiency does not permit successful competition with imports. B. workers who have very high productivity, and cannot survive against low-paid foreign workers. C. government that needs revenue from tariffs and quotas to cover government spending. D. firms that are highly efficient and cannot survive against low-price foreign imports.
Which of the following is not correct?
a. Earnings from capital may be paid to households in the form of dividends. b. Earnings from capital may be retained by firms to purchase additional capital. c. Firms may not pay out all of their earnings to households. d. Firms earn the highest profits when the owners of capital receive a value above the marginal product.
?
In Exhibit 3-16, if the market price of chairs is initially $15, a movement toward equilibrium would require:
A. ?no change, because an equilibrium already exists. B. ?the price to fall below $15 and both the quantity supplied and the quantity demanded to fall. C. ?the price to remain the same, but the supply curve to shift to the left. D. ?the price to fall below $15, the quantity supplied to fall, and the quantity demanded to rise.?