Which of the following would cause a credit to the U.S. balance of payments?
a. a group of U.S. citizens goes to New Zealand for a vacation.
b. General Motors pays a dividend to a citizen of Brazil.
c. Lloyd’s of London makes an insurance payment to a U.S. resident.
d. Russia cancels its purchases of U.S. wheat and buys wheat from Argentina.
c. Lloyd’s of London makes an insurance payment to a U.S. resident.
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Property taxes in the U.S. are ________
A) progressive B) regressive C) proportional D) negative
Of the following, which is the least likely example of an increase in total factor productivity?
A) the introduction of the assembly line B) an increase in immigration C) good weather D) a reduction in the relative price of energy
A price floor set below the equilibrium price will result in a surplus
a. True b. False
Which of the following conditions is least important for immiserizing growth to arise in a country?
A. The country exports a broad range of goods but imports all the other goods consumed in the economy. B. The foreign demand for the country's exports is price inelastic so an expansion in the country's export supply leads to a large drop in the international price of the export product. C. The country's growth is strongly biased toward expanding the country's supply of exports, and the increase in exports is large enough to have a noticeable impact on world prices. D. Before the growth, the country is heavily engaged in trade so the welfare loss from the decline in the terms of trade is great enough to offset the gains from being able to produce more.