Can a country have a trade deficit forever?
What will be an ideal response?
Countries whose imports exceed exports are said to run trade deficits. Countries cannot run trade deficits forever, just like individuals cannot borrow indefinitely. This is illustrated by the fact that the revenue earned from selling exports is the primary means for purchasing imports. Thus, in some years countries will have to export more then they import to repay for their past debts.
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Which of the following statements about brand equity is/are correct?
I. Brand equity is the degree to which a brand is worth more than its book value. II. Brand equity appears as an addition to shareholder equity on the balance sheet under paid-in capital.
If the consumption function is defined as C = 5,500 + 0.9Y, what is the value of the multiplier?
A) 0.l B) 0.9 C) 6.1 D) 10
If a perfectly competitive firm is producing 1,500 units and, at the 1,500th unit, the difference between marginal revenue and marginal cost (MR - MC) is negative, which of the following is true?
A) The firm should increase production to maximize profit. B) The 1,500th unit costs less to produce than the firm earns in revenue. C) The firm is maximizing profit. D) The firm should decrease production to maximize profit.
Overall, rapid economic growth between 1981 and 2012 has ______ the global poverty rate from __________________.
A. increased; below 20 percent to above 44 percent B. decreased; above 30 percent to below 15 percent C. decreased; above 44 percent to 12.7 percent D. increased; below 12.7 percent to above 25 percent