A deficit in a country's current account means that:
a. the country is running a net deficit in its financial account.
b. the country is a net lender to the rest of the world.
c. the country is running a net surplus in its financial account.
d. the country will have a positive value of net exports.
e. the domestic production is in excess of domestic spending.
c
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The quantity supplied of corn is the number of bushels that corn farmers want to sell under the current market conditions, while the supply of corn is a set of price-quantity pairs showing the amounts that farmers wish to sell at various hypothetical prices. According to the law of supply, a rise in the price of corn will cause a rise in the quantity supplied of corn. Non-price factors that positively affect corn growers (such as improved weather conditions, better agricultural technology, and lower costs of fertilizer, seed, labor, and other inputs) would cause a rise in the supply of corn. A rise in quantity supplied is shown by moving up and to the right along the supply curve, and a rise in supply is shown by shifting the supply curve down and to the right.
What will be an ideal response?
The relationship between real GDP and potential GDP over the business cycle can be best summarized by which of the following statements?
A) Real GDP fluctuates around potential GDP. B) Real GDP is always equal to potential GDP. C) Real GDP cannot be greater than potential GDP. D) Real GDP cannot be less than potential GDP. E) Real GDP cannot be equal to potential GDP.
Government regulation in the form of subsidies, tariffs, licensing, and inspections does which of the following?
(a) Creates rents for businesses (b) Offers profits to some businesses at the expense of others (c) Encourages the inefficient use of productive resources (d) All of the above
An innovator who creates new products and new ways to get business done is referred to as:
A. an entrepreneur. B. a capitalist. C. a creditor. D. a manager.