During this year a country reports imports of 1,000 billion, exports of 1,100 billion, foreign investment in the country of 900 billion, investment abroad of 1,200 billion, net interest and net transfers of zero.
What is the country's current account balance?
Ques. 2The figure above shows the demand and cost curves for a single-price monopoly. The firm's economic profit equals
A) 0.
B) 300.
C) 100.
D) 50.
Ques. 3Lizzie's budget line is shown in the figure above. If the price of a magazine rises, Lizzie's real income in terms of magazines books ________ and her real income in terms of cookies ________.
A) increases; does not change
B) decreases; does not change
C) decreases; increases
D) increases; decreases
Ques. 4A decrease in the price of a firm's output
A) raises the value of marginal product of each unit of labor.
B) shifts the firm's demand for labor curve rightward.
C) results in the firm increasing the amount of output it produces.
D) None of the above is correct.
Ques. 5The Coase Theorem points out that externality problems can be eliminated if the number of parties involved is small and if property rights
A) are granted solely to consumers.
B) are granted solely to producers.
C) are eliminated.
D) are granted to either consumers or producers and transactions costs are low.
Ques. 6The above figure shows the demand and cost curves for a firm in monopolistic competition. The firm earns total revenue of
A) 120.
B) 40.
C) 160.
D) 0.
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