Consumer surplus is the:
A) difference between the buyer's reservation value and the price he actually pays.
B) product of a buyer's reservation value and the price he actually pays.
C) sum of a buyer's reservation value and the price he actually pays.
D) ratio of a buyer's reservation value to the price he actually pays.
A
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In 2008, the U.S. current account balance was -$706 billion, net interest was +$119 billion, net transfers were -$128 billion, and exports were +$1,827 billion. Therefore, imports were
A) -$1,112 billion. B) +$1,112 billion. C) -$2,524 billion. D) +$2,780 billion. E) +$2,524 billion.
Suppose prices are quoted in dollars and transactions are conducted in pesos. The peso serves as a
A) medium of exchange. B) store of value. C) unit of account. D) all of the above.