In a floating exchange rate system, the capital account balance equals the negative of the current account balance.
Answer the following statement true (T) or false (F)
True
This is because countries that run trade surpluses are able to use the surplus to purchase assets in other countries.
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The base period for CPI calculations is generally 1982-84. In 2005, 50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s
This potential for bias in the CPI is referred to as ________ bias and results in ________. A) outlet; the CPI overestimating the true change in the cost of living B) outlet; the CPI underestimating the true change in the cost of living C) new product; the CPI overestimating the true change in the cost of living D) net product; the CPI underestimating the true change in the cost of living
Natural monopolies are usually found in industries with
a. low fixed costs. b. large economies of scale. c. a normal profit. d. constant economies of scale.
The fact that a gallon of gasoline commands a higher market price than a gallon of water indicates that:
a. gasoline is an economic good but water is not. b. the marginal utility of gasoline is greater than the marginal utility of a gallon of water. c. the average utility of a gallon of gasoline is greater than the average utility of a gallon of water. d. the total utility of gasoline exceeds the total utility of water.
Figure 4-24
Refer to . The per-unit burden of the tax on sellers is
a.
P3 - P1.
b.
P3 - P2.
c.
P2 - P1.
d.
Q2 - Q1.