Which of the following would decrease the balance on the current account?
A) a decrease in imports
B) a decrease in foreign direct investment
C) a decrease in the amount of aid money the government sends abroad
D) None of the above will decrease the balance on the current account.
D
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Suppose that, last year, the price of peanuts fell and the quantity sold increased. Use supply and demand analysis to explain how these changes could have occurred
What will be an ideal response?
According to the book, the most important strategy to a firm is its
A) pricing strategy. B) new product strategy. C) cost control procedures. D) all of these choices were reported to be equally important.
Suppose that an increase in aggregate demand causes an unplanned depletion in business inventories. Which of the following situations will result from this?
a. The economy moves up the short-run Phillips curve. b. The short-run Phillips curve shifts to the right. c. The short-run Phillips curve shifts to the left. d. The aggregate supply curve shifts to the left. e. The economy moves down the short-run Phillips curve.
In producing a sweater, a man who shears sheep pays a farmer $4 for a sheep. The shearing shop sells the wool to a knitting mill for $7 . The knitting mill buys the wool and makes it into a fine fabric and sells it to a sweater-making firm for $13 . The sweater- making firm sells the sweater to a clothing store for $20, and the clothing store sells the sweater, gift wrapped, for $50 . What is the
contribution to GDP of the previous sales transactions? a. $4 b. $20 c. $24 d. $50 e. $94