What is a balance of payments system, and what three types of international transactions are typically found in the balance of payments?
What will be an ideal response?
A balance of payments is a system of accounts that measures transactions of goods, services, income, and financial assets between the households, businesses and government of one country and the residents of the rest of the world during a specific time period. The three types of international transactions typically found in a balance of payments are the current account, the financial account, and the capital account.
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The major problem with running a functionally organized firm is
a. Measuring divisions' performance b. Tying pay to performance c. Ensuring that the functional divisions are working towards a common goal d. All of the above
A good economic theory brings clarity to chaos
a. True b. False
Which of the following statements best describes consumer surplus in the supply and demand model?
a. Consumer surplus is the area in the supply and demand model that is above the market price and above the demand curve. b. Consumer surplus is the area in the supply and demand model that is below the market price and below the demand curve. c. Consumer surplus is the area in the supply and demand model that is above the market price and below the demand curve. d. Consumer surplus is the area in the supply and demand model that is below the market price and above the demand curve.
The supply curve is believed to bend backward at high wage rates because
a. income effects outweigh substitution effects. b. substitution effects outweigh income effects. c. the income and substitution effects work together to create the backward bend. d. leisure time is less attractive.