The citizens of Exland, whose currency is the bun, conduct the transactions outlined in the table above.
a) What is Exland's current account balance?
b) What is Exland's capital account balance?
c) What is Exland's official settlement balance?
d) What is Exland's net foreign borrowing?
Ques. 2A monopolistically competitive firm is making a positive economic profit. In the long run, which of the following is most likely?
A) It will produce less output and it will charge a lower price.
B) It will produce the same output and charge the same price.
C) It will produce less output but keep price the same.
D) It will keep output the same but will charge a higher price.
Ques. 3The indifference curves in the figure above (I1, I2, and I3 ) reflect Peter's consumption preferences.
If Peter consumes 24 slices of pizza and 24 chocolate bars per month, he as satisfied as he would be consuming ________ slices of pizza and ________ chocolate bars per month. A) 48; 12
B) 40; 20
C) 32; 8
D) 16; 16
Ques. 4Suppose the price of soda is 2 each and the price of a pizza slice is 4 each. David maximizes his utility by buying only sodas and pizza. He buys 5 sodas and 10 slices of pizza. If the price of a soda increases to 3 each, David will
A) decrease the number of sodas bought and the demand curve for sodas will shift leftward.
B) decrease the number of sodas bought and move along the demand curve for soda.
C) buy more pizza and move along the demand curve for pizza.
D) buy less pizza and the demand curve for pizza will shift leftward.
Ques. 5Individual economic decisions are coordinated by
A) markets through adjustments in sales levels.
B) markets through adjustments in prices.
C) government through adjustments in sales taxes.
D) government through adjustments in income taxes.
Ques. 6As wages rise, the substitution effect induces households to
A) choose leisure rather than supplying labor in the labor market.
B) choose supplying labor in the labor market rather than engage in leisure.
C) reduce the opportunity cost of leisure.
D) reduce the economic rent from leisure.
Ques. 7The unregulated, single-price monopolist illustrated in the figure above makes an economic profit of
A) zero.
B) 8.00 per day.
C) 10.00 per day.
D) 40.00 per day.
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