In the U.S. balance of payments, foreign purchases of assets in the United States are a:
A. foreign currency outflow.
B. foreign currency inflow.
C. current account item.
D. debit, or outpayment.
B. foreign currency inflow.
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If marginal cost exceeds average variable cost but is less than average total cost, then as output increases average total cost ________ and average variable cost ________
A) increases; decreases B) decreases; decreases C) increases; increases D) decreases; increases
When a country allows trade and becomes an exporter of a good, which of the following is not a consequence?
a. The price paid by domestic consumers of the good increases. b. The price received by domestic producers of the good increases. c. The losses of domestic consumers of the good exceed the gains of domestic producers of the good. d. The gains of domestic producers of the good exceed the losses of domestic consumers of the good.
If the exchange rate of U.S. dollars for Canadian dollars is 1.1 Canadian dollars to $1 (U.S.), then the exchange rate of Canadian dollar for U.S. dollars is
A. .1 (1.1-1) US dollars per Canadian dollar. B. .909 (1/1.1) US dollars per Canadian dollar. C. -.1 (1-1.1) US dollars per Canadian dollar. D. not knowable from this data.
Which of the following will most likely occur during the recovery phase of a business cycle?
A. Real GDP rises, and unemployment falls. B. Real GDP declines, and inflation rises. C. Interest rates rise, and the number of business failures rise. D. Inflation rises, and employment falls.