During the last year, foreign investment in a country was $500 billion and the country's investment abroad was $600 billion. Which of the following statements is true?
A) The country has a current account deficit of $1,100 billion.
B) The country has net borrowing of $100 billion.
C) The country has a current account deficit of $100 billion.
D) The country has a capital and financial account deficit of $1,100 billion.
E) The country has net lending of $100 billion.
E
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
In the advanced economies, ________ of the factories use advanced capital equipment, and in the developing economies, ________ of the factories use advanced capital equipment
A) virtually all; virtually all B) some; some C) virtually all; none D) some; none of E) virtually all; some
Refer to Figure 17-3. Which of the panels in the diagram best represents an individual's labor supply curve?
A) Panel A B) Panel B C) Panel C D) Panel D
Suppose MRTS is not the same across all producers. In this case, the economic outcome is not fully efficient because:
A) exchange is inefficient. B) the use of inputs in production is inefficient. C) the mix of outputs in inefficient. D) none of the above