A U.S. trade deficit will cause all of the following phenomena except:

A. future interest and profits from assets sold to foreigners must be paid to them.
B. U.S. assets will have to be sold to foreigners.
C. production must eventually increase.
D. future consumption must decrease to pay for the current excess of imports over exports.


Answer: C

Economics

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If you are willing to sell your car business for $500,00 . and someone offers you $420,00 . for it, this transaction will generate:

a. There is no surplus created b. $80,00 . worth of seller surplus and unknown amount of buyer surplus c. $40,00 . worth of buyer surplus and $40,00 . of seller surplus d. $80,00 . worth of buyer surplus and unknown amount of seller surplus

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If Rachel bought too many hot dogs, her marginal utility would become negative and her total utility would

A. rise more slowly. B. stop rising. C. begin to fall. D. become negative.

Economics

Refer to the information provided in Figure 27.4 below to answer the question(s) that follow. Figure 27.4Refer to Figure 27.4. If the economy is currently at the intersection of AS and AD, a decrease in AS with no change in AD will cause

A. economic growth. B. deflationary growth. C. stagflation. D. deflation.

Economics