The United States' balance of payments is likely to improve when
A) there is an increase in political instability in other countries.
B) the inflation rate in the United States rises relative to other countries.
C) the American government increases its spending on foreign aid.
D) American people want to invest more in foreign countries.
Answer: A
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Explain how the price system eliminates a surplus
What will be an ideal response?
According to the text, Ethiopia probably has a low per capita real Gross Domestic Product (GDP) because
A) it has too many resources. B) it has a corrupt government. C) it has a low rate of saving. D) there are too many skilled workers in the country.
A firm that was initially a monopsonist, but now has to buy from a competitive resource market will:
a. buy more amount of resources and pay a higher price for these resources. b. buy the same amount of resources and pay a higher price for these resources. c. buy less amount of resources and pay a lower price for these resources. d. buy less amount of resources and pay a higher price for these resources. e. buy more amount of resources and pay a lower price for these resources.
Which of the following is the incorrect statement?
A. The slope of the net benefit curve is vertical where MB = MC. B. dB(Q)/dQ = MB. C. The marginal benefits curve is the slope of the total benefits curve. D. The vertical difference between the total benefit curve and the total cost curve is maximized at the optimal level of Q.