Why do foreigners export goods and services to buyers in the United States?
A) They are forced to sell to Americans.
B) They want to harm Americans and one way of doing so is to sell goods at low prices in the U.S. market.
C) They want to acquire dollars so they can purchase things from Americans.
D) They like helping Americans.
C) They want to acquire dollars so they can purchase things from Americans.
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If country A is well-endowed with natural resources but a small population while B is endowed with much labor but little land and few natural resources, then trade theory predicts that
a) A and B will not trade with each other, as neither can produce enough goods to export b) A will gain more from trade than B c) The price of labor-intensive goods will fall in country B after trade d) Trade will occur, but wages will fall in country A e) Wages and land values will rise in both countries if they trade
In economics, investment is defined as
A. the spending by households on human capital and durable goods. B. disposable income plus consumption. C. the spending by businesses on capital goods and inventories. D. disposable income minus consumption.
Mike has been unemployed for over a year. He hasn't looked for a job in the last three months, but he's just started looking for work again. Because Mike started looking for a new job,
A) the labor force participation rate decreased. B) the unemployment rate increased. C) the unemployment rate decreased. D) the working-age population increased.
Suppose for an economy, investment = $40; saving = $50, government spending + exports = 100; and taxes + imports = $110 . Then for this economy, total leakages exceed total injections by $20, so there will be pressure for the economy to contract
a. True b. False Indicate whether the statement is true or false