An example of a transaction that will be a surplus item on the U.S. balance of payments is
A) a U.S. resident purchasing French wine.
B) a French subsidiary's plant in New Jersey purchasing parts from the main plant in Paris.
C) a gift of wheat from the U.S. government to India.
D) a tourist from Germany buying a ticket to fly from New York to Chicago on American Airlines.
D
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The problem of scarcity means that people face trade-offs. Which of the following trade-offs are the concern of microeconomics?
A. Trade-offs faced by firms in what goods to produce B. Trade-offs faced by consumers in the purchase of goods C. Trade-offs faced by workers between work and leisure D. all of the above
An import quota on a product protects domestic industries by:
a. reducing the foreign supply to the domestic market and, thereby, raising the domestic price. b. increasing the foreign supply to the domestic market and, thereby, lowering the domestic price. c. increasing the domestic demand for the product and, thereby, increasing its price. d. providing the incentive for domestic producers to improve the efficiency of their operation and, thereby, reduce their per-unit costs of production.