Nations trade what they produce in excess of their own consumption to:
a. generate jobs for the domestic economy.
b. earn "good will" from the World Bank.
c. prevent chronic surpluses from driving down domestic prices.
d. acquire other things that they want to consume.
e. reduce the size of their foreign trade deficit.
d
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When there is a threat of inflation in the economy, the Fed can ________ the federal funds rate to ________ aggregate demand and ________ the price level
A) raise; decrease; decrease B) lower; increase; increase C) lower; increase; decrease D) raise; increase; decrease E) raise; decrease; increase
Productivity in manufacturing sectors has risen faster than in service sectors
a. True b. False Indicate whether the statement is true or false
When the marginal cost of producing sweet potatoes equals the marginal benefit, the sweet potato producer has:
a. incurred economic losses. b. reached the optimal quantity to produce. c. minimized the total costs of production. d. avoided incurring any opportunity costs.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.