A country who has a trade deficit:
A. imports less than it exports.
B. has a negative trade balance.
C. sells more goods at home than it sells abroad.
D. requires more trade in order to solve a budgetary deficit.
B. has a negative trade balance.
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The simultaneous import and export of goods in the same industry by a particular country is known as interindustry trade
a. True b. False Indicate whether the statement is true or false
Suppose that the exchange rate between Japanese yen and U.S. dollars is originally 130 yen to the dollar. If it then changes to 150 yen to the dollar, exports of U.S. goods to Japan will tend to: a. rise
b. fall. c. stay the same. d. change in an indeterminate direction.
Suppose a firm uses both labor (L) and capital (K) and its long-run production function is given by the expression Q = F(L,K) = 2L × ?(L + K). The firm currently uses 10 units of capital. Complete the following table:
What will be an ideal response?
If the government's provision of a subsidy is too large to counteract the entire effect of a positive externality, the:
A. total surplus will be maximized. B. quantity consumed will become even lower. C. quantity consumed will become too high. D. None of these statements is true.