If the U.S. experiences a current account deficit, then
A. the U.S. must also be running a capital account deficit.
B. the U.S. must be running a capital account surplus.
C. the U.S. may either experience a capital account surplus or deficit.
D. None of these statements are true.
B. the U.S. must be running a capital account surplus.
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A monopolistically competitive firm differs from a perfectly competitive firm in the long run in that
A) the demand curve faced by a monopolistically competitive firm is downward sloping, while the demand curve faced by a perfectly competitive firm is horizontal. B) profits are positive for a monopolistically competitive firm and zero for a perfectly competitive firm. C) profits are zero for a monopolistically competitive firm and positive for a perfectly competitive firm. D) marginal cost equals the market price for a monopolistically competitive firm but not for a perfectly competitive firm.
Which of the following categories accounts for roughly 70% of all federal spending?
a. Regional development, law enforcement and the judicial system, and administrative costs b. Transportation, housing, education, and income support for the poor c. International affairs, science and technology, and natural resources d. National defense, Social Security, health care, and interest payments
A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 20 ? Q and a 50 percent chance it will be P = 40 ? Q. The marginal cost of the firm is MC = Q. The expected profit-maximizing price is:
A. $20. B. $10. C. $15. D. $5.
The market supply of labor is
A. The total quantity of labor that workers are willing and able to supply at alternative wage rates in a given period. B. Different for each individual based on training and education levels. C. The total of all goods produced in the economy each year. D. The sum of all jobs created in the economy each year.