Refer to Table 19-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals

The total amount of outstanding IOUs a nation is obligated to repay other nations and international organizations is called

a. current account b. balance of payments c. international trade d. international debt e. capital account

Adverse selection is illustrated by people who take greater risks after they purchase insurance

a. True b. False Indicate whether the statement is true or false