The current account and the financial account must do which of the following?
a. equal the capital account
b. equal each other
c. move in the same direction
d. equal zero when added together
e. equal 1 when added together
Answer: d. equal zero when added together
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Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
If before Tracy chose, Amy could make a credible commitment to choose either the top or bottom branch when her turn came, then we would expect Tracy to get a payoff of ________ and Amy to get a payoff of ________.
A. 75; 150 B. 125; 125 C. 300; 200 D. 25; 225
The costs of inflation to households and firms due to holding less money and making more frequent trips to the bank are known as
A) seigniorage. B) menu costs. C) velocity costs. D) shoe-leather costs.
Suppose that the competitive market for rice in Japan was suddenly monopolized. The effect of such a change would be:
A) to decrease the price of rice to the Japanese people. B) to decrease the consumer surplus of Japanese rice consumers. C) to decrease the producer surplus of Japanese rice producers. D) a welfare gain for the Japanese people. E) increase the consumption of rice by the Japanese people.
Microeconomics is the study of
A) aggregate measures of the economy. B) foreign policy economic issues. C) federal budget details. D) individual decision making.