Which of the following statements has usually held TRUE about the relationship between the trade deficits and government budget deficits?
A) There is a negative relationship between trade deficits and budget deficits.
B) There is a positive relationship between trade deficits and budget deficits.
C) There is no relationship between trade deficits and budget deficits.
D) A relationship exists only when there is a balanced budget.
B
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Figure 5-17
Which of the following statements about Figure 5-17 must be correct?
A. The consumer pays a higher dollar price per unit for good Y at A than at D. B. The consumer pays the same dollar price per unit for good Y at A and at B. C. The consumer pays a higher dollar price per unit for good X at D than at A. D. The consumer pays a higher dollar price per unit for good X at A than at C.
In comparing an oligopolistic firm to a perfectly competitive firm it is generally assumed that the price charged by the competitive firm will be higher than the price charged by the oligopolistic firm
Indicate whether the statement is true or false
Roses are more expensive on Valentine's Day than at other times of the year, yet sales of roses are highest on that day. How does economic theory account for this?
A) An increase in demand pushes up the market clearing price of roses. B) People buying the roses are irrational. C) Roses are not subject to the law of demand. D) Florists know that there are no substitutes for roses, so they take advantage of consumers on Valentine's Day.
It is illegal to price discriminate EXCEPT in cases in which the price differences are due to actual cost differences. This situation is due to which antitrust act?
A) Clayton Act B) Contestable Market Act C) Federal Trade Commission Act D) Sherman Antitrust Act