In order for the balance of payments to balance,
a. the current account balance must equal the capital account balance
b. international reserves must flow out of the country
c. international reserves must flow into the country
d. the current account balance plus the capital account balance plus the net flow of international reserves plus the statistical discrepancy must equal zero
e. the current account balance plus the capital account balance plus the net flow of international reserves must be greater than the statistical discrepancy
D
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The price elasticity of supply is a measure of the extent to which the quantity supplied of a good changes when the
A) cost of producing the product increases. B) quantity of the good demanded increases. C) supply increases. D) price changes. E) number of firms supplying the good changes.
For lock-in to be an effective competitive strategy, a firm must successfully raid the customer base of competing firms on a regular basis
Indicate whether the statement is true or false
Because public goods are
a. excludable, people have an incentive to be free riders. b. excludable, people do not have an incentive to be free riders. c. not excludable, people have an incentive to be free riders. d. not excludable, people do not have an incentive to be free riders.
Which of the following is not correct?
a. Critics argue that minimum-wage laws hurt the very people they are intended to help. b. Minimum-wage laws may increase unemployment among the groups of workers affected by the minimum wage. c. If the demand for unskilled labor is relatively inelastic, the higher wage will produce more unemployment than if the demand for unskilled labor is relatively elastic. d. Minimum-wage laws may benefit teenagers from middle-class families, so the policy is not a precise way to help the poor.