A country that exports more than it imports will:
A. have a current account deficit and a capital account surplus.
B. have a current account deficit and a capital account deficit.
C. have a current account surplus and a capital account deficit.
D. have a current account surplus and a capital account surplus.
Answer: C
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Which of the following decreases the supply of restaurant meals?
A) Waiters get a pay raise. B) Consumers' incomes increase and restaurant meals are a normal good. C) Consumers' incomes decrease and restaurant meals are a normal good. D) The price of movies, a complement to restaurant meals, falls.
In the life-cycle hypothesis, if a person enters working life with an inherited stock of assets, this
A) raises his consumption during the working years. B) raises his consumption during the retirement years. C) raises his consumption in every year. D) lowers his consumption during the retirement years. E) lowers his consumption during the working years.
Refer to the information provided in Figure 31.2 below to answer the question(s) that follow.
Figure 31.2Refer to Figure 31.2. Point ________ is beyond the production capacity of this economy.
A. A B. B C. C D. D
Refer to the information provided in Table 33.6 below to answer the question(s) that follow.
Table 33.6
Refer to Table 33.6. If the exchange rate is $1 = 1 euro, then
A. the United States will import both peas and carrots. B. France will import carrots. C. the United States will import carrots and France will import peas. D. France will import both peas and carrots.