Suppose a country's net exports equal zero. Which of the following will happen if the volume of exports increases without an increase in the volume of imports?
A) The country will experience a budget deficit. B) The country will experience a trade surplus.
C) The country will experience a trade deficit. D) The country will experience a budget surplus.
B
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____ occurs whenever a third party receives or bears costs arising from an economic transaction in which the individual (or group) is not a direct participant
a. Pecuniary benefits and costs b. Externalities c. Intangibles d. Monopoly costs and benefits e. none of the above
Barriers to entry are forces that:
A. promote a more efficient allocation of resources across the economy. B. limit consumers from purchasing new products. C. limit the government from intervening in markets. D. limit new firms from joining an industry.
Other things equal, an increase in government purchases combined with an equal increase in taxes would: a. increase AD
b. decrease AD dramatically. c. decrease AD slightly. d. leave AD unchanged.
The supply curve shows
a. the same basic information as the demand curve. b. who will have an opportunity to produce or purchase an item. c. the quantity produced as a function of the price. d. plots of what quantities have been sold over the past few weeks or months.