A trade deficit occurs for a nation when it:
A. exports more than it imports.
B. imports more than it exports.
C. receives more foreign currency than it sends out in domestic currency.
D. loans out U.S. dollars to foreign buyers of domestically produced goods.
B. imports more than it exports.
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Explain three of the shortcomings of the free-enterprise system
What will be an ideal response?
Adam spent $10,000 on new equipment for his small business, "Adam's Fitness Studio." Membership at his fitness center is very low and at this rate, Adam needs an additional $12,000 per year to keep his studio open. Which of the following is true
A) The fixed cost of running the studio is $22,000. B) The $10,000 Adam spent on equipment is the total cost of starting the business and the $12,000 he'll need to continue operations is a marginal cost. C) The variable cost of running the studio is $22,000. D) The $10,000 Adam spent on equipment is a fixed cost of business and the $12,000 he'll need to continue operations is a variable cost.
Define the following terms and explain their importance to the study of economics
a. pure monopoly b. barriers to entry c. patent d. natural monopoly e. sunk costs
In an economy with persistent inflation,
a. real GDP will grow faster than nominal GDP. b. nominal GDP will grow faster than real GDP. c. nominal and real GDP will grow at the same rate. d. nominal and real GDP will both fall.