Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the nation's financial account and reserves account
a. Financial account would rise and reserves account would fall.
b. Financial account would not change and reserves account would fall.
c. Financial account would fall and reserves account would not change.
d. Financial account would fall and reserves account would fall.
e. Financial account would fall and reserves account would rise.
.C
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The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound, the total exports of cherries from the United States to other nations equals
A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.
All else equal, what happens to consumer surplus if the price of a good increases?
a. Consumer surplus increases. b. Consumer surplus decreases. c. Consumer surplus is unchanged. d. Consumer surplus may increase, decrease, or remain unchanged.
The market mechanism may best be defined as
A. The use of market signals and government directives to select economic outcomes. B. The process by which the production possibilities curve shifts inward. C. The use of market prices and sales to signal desired output. D. Price regulation by government.
If the marginal revenue product of land is less than its price, a firm should
A. use more land. B. try to increase the productivity of land. C. use less land. D. increase the price it is willing to pay for land.