If a nation's exports are $55 billion, while its imports are $50 billion, we can conclude with certainty that this nation is experiencing a
A. balance of trade surplus.
B. balance of payments surplus.
C. positive balance on current account.
D. positive balance on capital account.
A. balance of trade surplus.
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If the price of marshmallow exceeds the marginal value that the consumer places on marshmallows, then
a. the consumer is at the optimum. b. the consumer's level of satisfaction would increase if he buys more marshmallows and less of other goods. c. a surplus of marshmallows exists in the market. d. the optimum contains fewer marshmallows than the consumer is currently buying.
With price on the vertical axis and quantity on the horizontal axis, economists would draw a fall in supply as
A) a leftward shift in the supply curve. B) a rightward shift in the supply curve. C) a vertical supply curve. D) any which way we like.
You are sick and tired of your old wardrobe. You decide to donate it to a charity of your choice. Your action
a. Creates wealth by moving the clothes from lower value use to higher value use b. Destroys wealth since you lose your clothes c. Creates wealth by making you feel richer d. All of the above
When budget deficits take place in a high-employment economy, the effect is an increase in capital stock
a. True b. False Indicate whether the statement is true or false