Which of the following combinations is plausible, as it relates to a nation's balance of payments?
A. Current account = $+40 billion; capital account = $+20 billion; financial account = $-50
billion.
B. Current account = $-50 billion; capital account = $+20 billion; financial account = $+30
billion.
C. Current account = $+10 billion; capital account = $+40 billion; financial account = $+50
billion.
D. Current account = $+30 billion; capital account = $-20 billion; financial account = $-50
billion.
B. Current account = $-50 billion; capital account = $+20 billion; financial account = $+30
billion.
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Which of the following statements correctly describes perfectly competitive market equilibrium?
A) There is always excess supply or excess demand when the market is in equilibrium. B) Multiple equilibriums are possible for a given set of demand and supply curves. C) Government intervention is necessary for the market to reach equilibrium. D) Any deviation from equilibrium is automatically restored.
The infant industry argument calls for active government involvement
A) only if the government forecasts are accurate. B) only if some market failure can be identified. C) only if the industry is not one already dominated by industrial countries. D) only if the industry has a high value added. E) only if the industry is independently able to earn high returns.