A trade surplus occurs when
A. the value of imports is less than the value of exports.
B. consumption is greater than disposable income.
C. government spending is less than total tax revenue.
D. none of these.
Answer: A
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Suppose group price discrimination is possible but a firm chooses not to and sets the same price in each market. As a result
A) price elasticity of demand is the same in each market. B) the price-inelastic market will buy zero units. C) marginal revenue in the more price-elastic market exceeds marginal revenue in the less price-elastic market. D) the deadweight loss is less than if the firm price discriminated.
Structural unemployment occurs when unemployed workers move between jobs
a. True b. False Indicate whether the statement is true or false
In a perfectly competitive industry, firms are likely to:
A.) Exit when there are economic profits because they know the profits will not last. B.) Reduce the level of production when there are economic profits. C.) Enter when there are economic profits. D.) Enter when price is equal to the minimum average total cost.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.