Because the United States purchases more cars, stereos, and other goods from Japan than Japan purchases from the United States, it is often said that the United States has a "trade deficit" with Japan. Does this mean that the U.S. balance of payments is running a deficit? How would you more accurately characterize the effect that trade with Japan has on the balance of payments?
The balance of payments must, by definition, balance (neither a deficit nor a surplus). If we import more goods from Japan (and other countries) than we export to those countries, we will run a current account deficit, which must be balanced by a capital account surplus.
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A) 1990s; advancements in healthcare due to the unlocking of the human genome B) 1980s; the invention of the computer and the oil embargo C) 1970s; an increase in government taxes and expanded regulations D) 1900s; the war on terror and return to the basics of education E) 1960s; fast paced technological change and large increases in human capital accumulation
Refer to Figure 5-7. The marginal benefit of reducing pollution curve is the same curve as
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