When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is
A) both a U.S. and an Italian import.
B) a U.S. import and an Italian export.
C) a U.S. export and an Italian import.
D) neither an export nor an import for either the United States or Italy.
Answer: B
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"Turnover" unemployment is another name for ________ unemployment
A) frictional B) structural C) cyclical D) natural
Opportunity cost can best be defined as the
A. value of what must be given up in order to acquire an item. B. money cost to the buyer to acquire a good or service. C. total value of all the other items that otherwise could be acquired. D. cost to the seller to produce an item. E. time cost to obtain the money to buy an item.
Many developing countries face a balance of payments constraint because:
A. they fail to implement exchange rate policy correctly. B. they hold too few international reserves. C. they hold too many international reserves. D. the IMF forces them to adopt policies that are counterproductive.
To have more consumer goods in the future, we must
A) produce more capital goods today. B) lower current income. C) get government involved in the production process. D) stop producing all goods today.