In the United States, when the outflow of dollars to pay for our imports of goods from Japan exceeds the inflow of dollars earned by our exports to Japan, typically
a. the dollar appreciates
b. the United States can buy back some of its assets that are held by the Japanese
c. this is merely a statistical discrepancy because the trade with Japan (exports and imports) must net out to zero
d. the United States can use its reserves of yen to cover the difference
e. the Japanese can borrow the needed dollars through the foreign exchange market
D
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When a market is in equilibrium
A) everyone has all they want of the commodity in question. B) there is no shortage and no surplus at the equilibrium price. C) the number of buyers is exactly equal to the number of sellers. D) the supply curve has the same slope as the demand curve.
A firm is concerned about the possibility of patent infringement and has hired an attorney to review patents. If the attorney is reviewing 100 patents and the marginal cost of reviewing the 100th patent is $30 and the expected marginal benefit of reviewing the 100th patent is $25, which of the following is true?
A) The firm's total cost of infringement will increase if the number of patents reviewed decreases. B) The firm's total cost of infringement will decrease if the number of patents reviewed decreases. C) The firm is minimizing the total cost of infringement. D) The firm's total cost of infringement will decrease if the number of patents reviewed increases.
If expected inflation is constant, then when the nominal interest rate falls, the real interest rate
a. falls by more than the change in the nominal interest rate. b. falls by the change in the nominal interest rate. c. rises by the change in the nominal interest rate. d. rises by more than the change in the nominal interest rate.
A command-and-control policy is another term for a
a. pollution permit. b. government regulation. c. corrective tax. d. Both a and b are correct.