When a country's current account balance is added to its capital account balance, the sum should be:
A. positive.
B. zero.
C. negative.
D. twice the current account.
Answer: B
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Which of the following applies to an object serving as a store of value?
I. If an object can be held and exchanged later for a good or service, it serves as a store of value. II. The less stable an object's value, the better it serves as a store of value. III. A work of art can serve as a store of value. A) I only B) I and II C) I and III D) I, II and III
Which of the following statements is valid when the market supply curve is vertical?
a. Market quantity supplied does not change when the price changes. b. Supply is perfectly elastic. c. An increase in market demand will increase the equilibrium quantity. d. An increase in market demand will not increase the equilibrium price.
When Brazil can generate a product using fewer labor hours and resources than the United States, an economist would say that Brazil had:
A. a comparative advantage in production of the product. B. an absolute advantage in production of the product. C. a higher opportunity cost of producing the product. D. no incentive to import the product, regardless of the cost-price conditions for other products.
Tired of looking for work with nothing to show for it, Bill has given up on the job search. Bill is
A. a contingent worker. B. part of the frictionally unemployed. C. voluntarily unemployed. D. a discouraged worker.