U.S. exports are $300 billion, U.S. imports are $500 billion. Which of the following are consistent with the level of net exports?
a. The U.S has a trade surplus. The U.S. purchases $800 billion worth of foreign assets and foreign countries purchase $600 billion worth of U.S. assets.
b. The U.S. has a trade surplus. The U.S. purchases $600 billion worth of foreign assets and foreign countries purchase $800 billion worth of U.S. assets.
c. The U.S has a trade deficit. The U.S. purchases $800 billion worth of foreign assets and foreign countries purchase $600 billion worth of U.S. assets.
d. The U.S. has a trade deficit. The U.S. purchases $600 billion worth of foreign assets and foreign countries purchase $800 billion worth of U.S. asset.
d
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Suppose you observe that with a given supply curve, the Peruvian demand for Argentinean pesos steadily decreases. This will most likely mean:
a. the supply of Peruvian nuevos soles has increased on the foreign exchange market. b. the Argentinean peso will appreciate in value relative to the Peruvian nuevo sol. c. the Argentinean peso will depreciate in value relative to the Peruvian nuevo sol. d. the Peruvian demand for Argentinean goods has increased. e. the supply of Argentinean pesos has increased on the foreign exchange market.
In determining whether a further investment in education for an individual is worth the costs, an economist would look at whether the sum of the
A. annual education costs is exceeded by the sum of the increases in income that are attributable to the increased education. B. present value of the annual education costs is exceeded by the sum of the present value of the annual income to the person. C. annual education costs is exceeded by the sum of annual income to the person. D. present value of the annual education costs is exceeded by the sum of the present value of the increases in income that are attributable to the increased education.
According to your authors, the following is a necessary condition for a competitive market:
A) Large numbers of buyers and sellers B) Full and complete information C) Freedom of entry D) Identical products E) All of the above.
A basic tenet of the theory of the firm is that the firm's primary objective is to
A. produce a given level of output at a specified cost. B. operate for the benefit of society. C. stay out of debt. D. maximize economic profits.