A U.S. firm builds a factory in South Africa. This will be entered as a
A. debit in the U.S. current account.
B. debit in the U.S. capital account.
C. credit in the U.S. current account.
D. credit in the U.S. capital account.
Ans: B. debit in the U.S. capital account.
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President Obama has proposed a goal that everyone complete at least one year of formal education or training beyond high school
This policy would ________ the production of current consumption goods and services and ________ the future production of consumption goods and services. A) decrease; increase B) increase; decrease C) not change; increase D) increase; increase
Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1 . Now the exchange rate changes to 90 yen = $1 . Then the:
a. machine would now cost more dollars. b. machine would now cost the Japanese citizen less yen. c. machine would now cost less dollars. d. machine would now cost the Japanese citizen more yen. e. yen has depreciated in value.
Which of the following is not an obstacle to achieving environmental efficiency through markets?
A. Transactions costs. B. Income effects. C. Free-rider problems. D. Private negotiations.
Economists argue that individuals should continue to consume until total benefit equals total cost.
Answer the following statement true (T) or false (F)