The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates.
B. currency convertibility observed in most developing countries.
C. domestic macroeconomic policy, arising from a shortage of international reserves.
D. macroeconomic policy resulting from IMF conditionality.
Answer: C
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a. price is set equal to marginal cost b. marginal revenue is set equal to price c. marginal revenue is set equal to marginal cost d. price is set equal to average total cost e. marginal revenue is set equal to average total cost
Which of the four criteria for an ideal voting system is demonstrated when everyone in a town prefers spending on improved public transportation systems instead of public parks, and transportation spending wins?
A. No dictator B. Unanimity C. Transitivity D. Independence of irrelevant alternatives