Which transaction represents a debit in the current account section of the U.S. balance of payments?
A. The Arab Capital Investment Corporation makes a loan to a U.S. firm
B. A U.S. subsidiary exports raw materials to the Canadian parent company
C. U.S. tourists in Great Britain purchase pounds with dollars in order to buy souvenirs
D. U.S. firms and individuals receive dividends from their investments in Latin America
C. U.S. tourists in Great Britain purchase pounds with dollars in order to buy souvenirs
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Why are cartels are difficult to operate?
a. They work only if members keep to the agreed output and price. b. They are illegal worldwide. c. Firms in a cartel are likely to lose money. d. The products are perfectly competitive.
The Lerner index measures
A) a firm's potential monopoly power. B) the amount of monopoly power a firm chooses to exercises when maximizing profits. C) a firm's potential profitability. D) an industry's potential market power.