A trade surplus occurs when:
A. The dollar value of exports exceeds the dollar value of imports.
B. The gains from trade are not fully realized.
C. A country does not have a comparative advantage in any goods.
D. The cost of goods is so high that imports exceed exports.
A. The dollar value of exports exceeds the dollar value of imports.
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What will be an ideal response?
According to classical economists, in recessions, not only does the unemployment rate increase, so does the
A) interest rate. B) level of fiscal stimulus. C) natural rate of unemployment. D) level of potential output.
A lowering of the legal reserve requirement makes it possible to expand the money supply
Indicate whether the statement is true or false
Sometimes, the taxes with the smallest excess burden are:
a. progressive b. regressive c. proportional d. digressive