The current account balance is equal to
A. Trade balance + services balance - capital account balance.
B. Total payments made by residents of the United States to foreigners plus total payments made by foreigners to residents of the United States.
C .Trade balance + unilateral transfers.
D. Trade balance + services balance + capital account balance.
A current account balance includes the net sum of exports/imports made of goods + services and + transfer of money.
So it is D. Trade balance + services balance + capital account balance.
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Taxes provide individuals with incentive to:
(a) Increase the number of working hours. (b) Increase productivity by working longer and harder. (c) Direct resources to uses where taxes are relatively low or nonexistent. (d) Buy and save more.
measure of the price level that includes prices of the final goods and services included in GDP
What will be an ideal response?
If Brazil has a comparative advantage relative to Cuba in the production of sugar cane, then
A) the average cost of production for sugar cane is lower in Brazil than in Cuba. B) the implicit costs of production for sugar cane are lower in Brazil than in Cuba. C) the opportunity cost of production for sugar cane is lower in Brazil than in Cuba. D) the explicit cost of production for sugar cane is lower in Brazil than in Cuba.
Economists Novy-Marx and Rauh contend that if Boston wanted to adequately fund its pension systems for its public workers, it would have to put on
A. a one-time tax of nearly $310,000 per household. B. an annual tax of nearly $31,000 per household. C. a one-time tax of nearly $31,000 per household. D. an annual tax of only $31 per household.