Which of the following statements is TRUE about the role of gifts given to U.S. citizens from foreign residents?
A) Gifts are not included in the balance of payments because of the nature of the gift.
B) Gifts are only included in the balance of payments if the gift is given to a government official.
C) Gifts are included in the balance of payments.
D) Gifts given to U.S. citizens are not included in the balance of payments but gifts given to foreigners are included.
C
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In the short run, a firm that incurs losses might choose to produce rather than shut down if the amount of its revenue is less than its fixed cost
Indicate whether the statement is true or false
_____ is the primary reason that explains why some nations are richer than the others
a. A democratic government b. A strong judicial system c. Access to education d. Private ownership e. A stable currency
Suppose that we learn that hotels in Los Angeles generally operate with an average vacancy rate of 15 percent (in other words, 85 percent of the hotel rooms are filled with guests). Given this information about excess capacity, we would judge this market to be
A. an oligopoly. B. a perfectly competitive market. C. a monopolistically competitive market. D. a monopoly.
Based on economic criteria, a nation should choose a fixed exchange rate if:
A) the monetary authorities are capable of handling shocks. B) the net benefits of fixing versus floating are positive. C) the net benefits of fixing versus floating are negative. D) there is a liberal political agenda that restricts government authority over capital flows.