When a nation's net exports are equal to zero, it has a
A. deficit in trade.
B. surplus in trade.
C. balanced trade.
D. shortage in trade.
Answer: C
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The above table has the total product schedule for Joe's Barber Shop. Joe charges $6 per haircut. If the wage rate is $24 per worker, what quantity of labor will maximize profits?
A) 1 worker B) 2 workers C) 4 workers D) 5 workers
According to the new classical model, the output cost of reducing inflation
a. is the costs of the revenue lost by printing less money. b. is the lost income from the large recession that will occur as aggregate demand falls. c. may be small if the policy to reduce inflation is seen as credible by the public. d. will be zero if it is unanticipated.
Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?
a. similar opinions about the validity of economic theories b. significant differences in education c. differences in personal values d. a reliance on normative statement for research theories
There is a
a. short-run tradeoff between inflation and unemployment. b. short-run tradeoff between an increase in the money supply and inflation. c. long-run tradeoff between inflation and unemployment. d. long-run tradeoff between an increase in the money supply and inflation.