Looking at the U.S. balance of payments for the last two decades, how have the current account and the capital account changed?
What will be an ideal response?
Since the early 1980s and onward, the U.S. current account has been negative and sometimes quite large. The U.S. capital account has more or less mirrored the current account, only it has been positive rather than negative. Thus when the current account deficit is small, the capital account surplus is small and when the current account deficit is large, the capital account surplus is large.
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The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. When the marginal social benefit is equal to the marginal social cost of chocolate in Kaffenia
A) either 100 pounds or 250 pounds can be produced each day. B) no chocolate is produced. C) 150 pounds will be produced each day. D) any quantity up to 150 pounds will be efficient.
Refer to Table 8-3. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals
A) $2,200. B) $1,600. C) $1,400. D) $1,200.