When the Chinese government buys U.S. government bonds, from the perspective of the United States, this is a(n):
A. capital inflow.
B. export.
C. import.
D. capital outflow.
Answer: A
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A move from I to L best represents a
A. change in quantity demanded.
B. change in demand.
C. increase in demand.
D. decrease in demand.
Social and political forces affect the way in which the invisible hand works.
Answer the following statement true (T) or false (F)
Joe consumes pizza and movies. Pizza and movies are substitutes. According to marginal utility theory, if the price of a pizza rises then
A) the demand curve for pizza shifts leftward. B) the demand curve for pizza shifts leftward and the demand curve for movies shifts rightward. C) there is an upward movement along the demand curve for pizza. D) there is an upward movement along the demand curve for pizza and the demand curve for movies shifts rightward.
Suppose your marginal utility from consuming the 3rd slice of cake is zero, then your total utility from consuming cake is
A) negative. B) increasing. C) maximized. D) decreasing.