The current account balance of the balance-of-payments account equals
A. the domestic production of goods and services.
B. net foreign investment.
C. the sum of national savings and domestic capital formation.
D. net credits minus debits involving changes in nonofficial foreign financial assets and liabilities.
Answer: B
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For most firms in the economy, the largest part of factor costs is the cost of
a. labor. b. capital. c. property and machinery. d. land and natural resources.
Explain the difference between minimum wage and subsidies as a way to help low-income people. Identify disadvantages of each.
What will be an ideal response?
Which of the following is necessary for an economy to self-adjust fairly quickly, according to classical economists?
a) The use of monetary policy b) A high unemployment rate c) The use of fiscal policy d) Flexible wages and prices
A government may be able to reduce the international value of its currency by:
A. selling its currency in the foreign exchange market. B. buying its currency in the foreign exchange market. C. selling foreign currencies in the foreign exchange market. D. increasing its domestic interest rates.