Under the price-specie-flow mechanism, what happens when, say, Germany's current account surplus is greater than its non-reserve capital account deficits?
A) German loans will finance all foreign net imports.
B) Automatic drop in German domestic prices and rise in foreign prices.
C) Gold reserves will flow into Germany.
D) Gold reserves will flow out of Germany.
E) Germany will experience a deficit.
C
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Cap-and-trade refers to
A) capping emissions and issuing tradeable emissions permits. B) capping revenue from selling emissions permits. C) countries trading fishing rights in international waters. D) capping taxes on firms that engage in international trade. E) capping the benefits gained from pollution controls.
Credential inflation results from
(a) a combination of cost-push inflation and demand-pull inflation. (b) rigidities in the industrial sector. (c) the need to select from among qualified applicants in the modern sector. (d) all of the above.
Consider a perfectly competitive industry in a long-run equilibrium. If a single firm in that industry discovers a significant cost-saving production technology, then:
A. all firms in the market will earn an economic profit in the short run. B. the firm will earn an economic profit in the long run. C. all the firms in the market will earn an economic profit in the long run. D. the rest of the industry will quickly adopt the new technology.
A firm that changes its price and sees no change in the total revenues it receives is facing demand that is
A. price inelastic. B. revenue inelastic. C. unit elastic. D. price elastic.