The unbalanced development strategy for economic development requires little government intervention

A standard which came to the market first, such as the QWERTY letter layout in typewriters, can become entrenched (this layout is still used for computer keyboards today). What is this phenomenon called?

A) path dependency B) sunk cost C) comparative advantage D) network externalities

If the Federal Reserve buys $3 billion worth of Japanese yen, $6 billion of euros, and sells $5 billion of British pounds, how does this affect the balance of payments?

A) Falls by $4 billion B) Rises by $4 billion C) Rises by $9 billion D) Falls by $5 billion