Which of the Following Would Contribute, Directly or Indirectly, to a Deficit

question 214

Multiple Choice

Which of the following would contribute, directly or indirectly, to a deficit in the capital account of the U.S.balance of payments?

• A)A British citizen buys stock in Ford.
• B)A British citizen buys a bond from Ford.
• C)Interest rates fall in the United States relative to their level in the rest of the world.
• D)Australian publisher Rupert Murdoch buys The New York Times.
• E)Developing countries become more stable and so borrow less from U.S.banks.

Identify the role of government in creating or limiting monopoly power.

Analyze the economic effects of monopoly on income distribution.

Describe the conditions for effective price discrimination in monopoly.

Understand the relationship between demand elasticity and monopolist's pricing decisions.

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Definitions:

Joint Costs

Costs that are incurred in the process of producing two or more products simultaneously and cannot be easily separated for each product.

Market Value at Split-Off Method

A method used in accounting to allocate joint costs among products on the basis of their respective market values at the point where they are separable or split-off.

Joint Manufacturing Processes

Production processes in which multiple products are produced simultaneously or sequentially using the same resources or inputs.

Joint Products

Products that are produced together from the same process or production system, each yielding revenue.