When a Japanese automaker makes a profit on a plant located in the United States, this enters into the U.S. balance of payments in the category of
a. merchandise exports
b. merchandise imports
c. income receipts on foreign investments
d. income payments on foreign investments
e. unilateral transfers
D
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A firm is producing a joint product, Product A and Product B, with variable proportions. At its current production levels, the marginal benefit of producing Product A is $4 and the marginal cost is $2 and the marginal benefit of producing Product B is $4 and the marginal cost is $6. To maximize profits, the managers of the firm should produce ________ of Product A and ________ of Product B.
A) more; less B) less; more C) less; less D) more; more
Which of the following is closest to the future value of a $40,000 deposit earning 3 percent interest annually after 5 years?
A. $41,282 B. $46,021 C. $46,371 D. $41,150
You live in a small country that suffers constantly from high and variable rates of inflation. You are quite sure it has something to do with the fact that the head of the central bank is the President's brother. A rival presidential candidate is advocating fixing the exchange rate between your country's currency and the dollar. What are the advantages to this proposal and how do you think the current head of the central bank will respond?
What will be an ideal response?
Scarcity is determined by the existence of bad alternatives.
a. true b. false