Walter rents some ice time at the local hockey rink for 2 hours. After skating for an hour, he finds himself cold, tired, and hungry. If Walter decides to skate around for the other hour before leaving, it is likely because he:
A. is weighing his opportunity costs of the second hour against the benefits of the second hour of skating.
B. is focusing on the sunk cost of the rink time.
C. is ignoring the sunk cost of the rink time.
D. None of these is true.
Answer: B
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Suppose a country's net exports equal -$21.3 billion. Which of the following will happen if the volume of exports increases by $1 billion, imports remaining unchanged?
A) The country's net exports will be equal to -$20.3 billion. B) The country's net exports will become positive. C) The country's net exports will be equal to -$22.3 billion. D) The country's net exports will be zero.
Net capital outflows ________
A) are also known as net foreign investment B) are positive if saving is greater than investment C) are also known as the trade balance D) all of the above E) none of the above