How did the United States become a net debtor in the 1980s? Is our foreign debt a significant problem? Explain
What will be an ideal response?
In the 1980s, the United States ran large current account deficits, which had to be financed by net foreign borrowing. But the foreign debt doesn't represent a significant problem because it remains small relative to our GDP and because it is mostly in the form of portfolio investment rather than direct investment. But it is worrisome that the increased foreign debt hasn't been accompanied by a rise in our capital stock.
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A fall in the price of lemons from $10.50 to $9.50 per bushel increases the quantity demanded from 19,200 to 20,800 bushels. The price elasticity of demand is
A) 0.80. B) 1.20. C) 1.25. D) 8.00.
Refer to the data provided in Table 10.1 below to answer the following question(s).
Table 10.1 
Refer to Table 10.1. The marginal revenue product of the fifth worker is
A. $15. B. $75. C. $90. D. $550.