An economy with a trade surplus must also have:
A. positive net capital inflows.
B. a budget surplus.
C. a trade deficit.
D. positive net capital outflows.
Answer: D
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An economic ________ refers to either an upturn or a downturn in the economy
A) fluctuation B) stagnation C) model D) chain index
In the case of a small country, producer surplus
A) increases more with a tariff than with an equivalent quota. B) increases more with a quota than with an equivalent tariff. C) is not changed by tariffs or quotas. D) increases the same with tariffs and equivalent quotas. E) increases more with quotas.
Suppose that a price-discriminating monopolist divides its market into two segments. The firm will charge the lower price in the market segment where consumers
a. have relatively less elastic demand b. have relatively more elastic demand c. attach a higher marginal value to each unit of the good d. have perfectly inelastic demand e. attach higher average value to units of the good
Domestic policies can have unintended effects on international trade
Indicate whether the statement is true or false