Which of the following would tend to contribute to a U.S. current account surplus?
A. The United States cuts back on American military personnel stationed in Japan.
B. U.S. tourists travel in large numbers to Asia.
C. The United States makes a unilateral tariff reduction on imported goods.
D. Russian vodka becomes increasingly popular in the United States.
Answer: A
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Liquidity can
A) not be created. B) be created by borrowing short and lending long. C) only be created by the government. D) be created by borrowing long and lending short.
In August 1988, the Los Angeles Kings hired Wayne Gretzky for $15 million in cash. The hockey team’s decision must have been based on the expectation that
A. Gretzky’s opportunity cost will exceed $15 million. B. Gretzky’s marginal revenue product will equal or exceed $15 million. C. the team’s total revenue will equal $15 million. D. Gretzky’s marginal revenue product will rise in the long run.
With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers, then positive analysis would consider:
A. whether the surplus transferred from consumers to producers is larger than the consumer surplus lost to deadweight loss.
B. whether the producer surplus lost to deadweight loss is larger than the producer surplus gained from a higher price.
C. whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss.
D. whether the producer surplus lost due to lower prices is larger than the producer surplus lost due to fewer transactions taking place.
The fraction of a change in income that is consumed or spent is called
A. the marginal propensity to save. B. average consumption. C. the marginal propensity to consume. D. the marginal propensity of income.