What effect does the following transaction have on the U.S. balance of payments? (Choose the proper debit and credit entries.)Ford Motor Company (U.S.) purchases automobile parts from Mexico and agrees to pay the Mexican supplier in Mexican pesos in 90 days
a. Debit the U.S. financial account; credit the U.S. current account.
b. Credit the U.S. financial account; debit the U.S. current account.
c. Debit the U.S. financial account; credit the U.S. financial account.
d. Credit the U.S. financial account; debit errors and omissions.
.B
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Suppose that Country A has an absolute advantage over Country B in the production of both wheat and cloth. The opportunity cost of 1 unit of wheat is 2 units of cloth in Country A and 3 units of cloth in Country B. It follows that production of both wheat and cloth will be maximized if
a. Country A specializes in cloth. b. Country A specializes in wheat. c. Country A produces both goods. d. both countries produce both goods.
The most oligopolistic industry of those presented in the above table is likely to be industry
A) W. B) X. C) Y. D) Z.
Which economist first identified an inverse relationship between rates of inflation and rates of unemployment?
a. John M. Keynes b. A. W. Phillips c. Robert Barro d. Adam Smith e. Arthur Laffer
Persons who have given up looking for work are classified as
a. unemployed. b. discouraged workers. c. in the labor force. d. temporarily unemployed.