The balance of payments includes which three accounts?
A) the current account, the financial account, and the capital account
B) the net investment account, the net exports account, and the net transfers account
C) the balance of trade account, the net foreign investment account, and statistical discrepancy
D) the capital flows account, the financial account, and the trade account
A
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A monopoly exists because of
a. barriers to entry b. the large number of buyers and sellers c. the absence of barriers to entry d. collusion among the dominant firms e. the absence of exclusive government franchises
On car insurance policies, Countrywide Insurance Company offers drivers an option: Policy 1 features a deductible of $1,000, and it requires a driver to pay an annual premium of $500 . Policy 2 features a deductible of $250, and it requires a driver to pay an annual premium of $1,000
a. In offering these two policies, Countrywide is engaging in illegal price discrimination. b. In offering these two policies, Countrywide is screening drivers. c. Policy 1 is more of a burden for safe drivers than it is for risky drivers. d. In offering these two policies, Countrywide is signaling their quality to drivers.