The major difference between the balance of payments and the foreign exchange market is that:
a. Actually, there is no difference. All sources of funds in the balance of payments are demands for foreign exchange and all uses of funds in the balance of payments are supplies of foreign exchange.
b. Actually, there is no difference. All sources of funds in the balance of payments are supplies of foreign exchange and all uses of funds in the balance of payments are demands of foreign exchange.
c. The balance of payments includes many more transactions than are included in the foreign exchange market.
d. The foreign exchange market includes many more transactions than are in the balance of payments.
.C
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In the short run, a perfectly competitive firm's economic profits
A) must equal zero, that is, the firm earns a normal profit. B) must be positive. C) might be positive, negative (an economic loss), or zero (a normal profit). D) must be negative, that is the firm must incur an economic loss.
The entrepreneur is always searching for
A) positive profit. B) normal profit. C) accounting profit. D) economic profit.