A U.S. firm called EcoWind produces windmills for households to generate electricity. It uses 25,000 recently obtained pesos to buy copper from a mining company in Argentina. As a result of this exchange, by how much, if at all, and in which direction did: A. U.S. net exports change? B. U.S. net capital outflow change?
A. U.S. net exports fell by 25,000 pesos.
B. U.S. net capital outflow fell by 25,000 pesos.
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Refer to Table 2-14. What is Scotland's opportunity cost of producing one motorcycle?
A) 0.25 guitar B) 4 guitars C) 12 guitars D) 16 guitars
One study of the distribution of wealth indicates that the bottom 40 percent of households hold 1 percent or less of total marketable wealth in the United States and the top 1 percent owns close to 40 percent of it. An economist might observe that these data do not include the value of human capital: the value of labor and skills embodied in a person. If we were to include human capital, which of the following people's net worth would change the most?
A. Debra, who recently received a $25,000 bonus from her job that she has spent on an around-the-world trip B. Betty, who has just retired but expects to live well because her retirement account is worth $1,000,000 C. Alice, who has just completed her education as a medical doctor and now has student loans of $100,000 D. Carol, who has just bought an apartment for $500,000 using savings and bank loans
A bank's reserves include
What will be an ideal response?
Which of the following is evidence of a surplus of bananas?
A) Firms raise the price of bananas. B) The price of bananas is lowered in order to increase sales. C) The equilibrium price of bananas rises due to an increase in demand. D) The quantity of bananas demanded is greater than the quantity supplied.