Which of the following transactions would impact the net investment income in the U.S. balance of payments?
a. A U.S. resident earns interest after investing in an American company.
b. A firm in Canada buys an American-made truck for its shipping business.
c. An American corporation pays a stock dividend to a resident of Germany.
d. An American start-up invests in new machinery for its factory in Chicago.
c. An American corporation pays a stock dividend to a resident of Germany.
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Suppose the market clearing price for apples falls from $3.00 to $2.00 per pound, and the overall market clearing output increases from 1 million to 2 million pounds. How can we explain the fall in price and increase in market output?
A) Supply decreased and demand remained unchanged. B) Supply remained unchanged and demand decreased. C) Demand increased and supply remained unchanged. D) Demand remained unchanged and supply increased.
A country can benefit by indulging in international trade when:
a. it produces a good in which it has absolute disadvantage. b. it produces a good in which its trading partner has an absolute advantage. c. it produces a good in which it has comparative advantage. d. it produces all the goods which are supported by its resources. e. it produces nothing and merely depends on foreign imports.
During the 2008 financial crisis velocity decreased. This means that the rate at which money changed hands
a. decreased. Other things the same, a decrease in velocity decreases the price level. b. decreased. Other things the same, a decrease in velocity increases the price level. c. increased. Other things the same, an increase in velocity decreases the price level. d. increased. Other things the same, an increase in velocity increases the price level.
If professional boxing matches are on pay-per-view television, the price for viewing is ___________ than if it were provided on regular cable television and the equilibrium quantity is ___________.
a. lower, lower b. lower, higher c. higher, higher d. higher, lower