Which of the following statements is TRUE about the role that service exports and imports have in the balance of payments?
A) Service exports and imports are not included in the balance of payments because it is impossible to transport a service to another country.
B) Service exports and imports are included in the balance of payments in the labor account.
C) Service exports and imports are included in the balance of payments in the official reserve transactions account.
D) Service exports and imports are included in the balance of payments in the current account.
Answer: D
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An increase in the price of a resource will cause a rightward shift of its supply curve
a. True b. False
Which of the following is NOT true of a perfectly competitive firm?
A. It sells only a small fraction of the total quantity exchanged in the market. B. It seeks to maximize revenue. C. It faces a perfectly elastic demand curve. D. It is unable to influence the price of the good it sells.