A firm that buys inputs from outside sources is said to ________
a. vertically integrate
b. outsource
c. create economies of scope
d. create hidden characteristics
b
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Suppose a country's net exports equal 0. If the volume of exports increases without any change in the volume of imports, the country will experience a ________
A) budget surplus B) budget deficit C) trade deficit D) trade surplus
Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000
Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year. What is Sweet's total opportunity cost? A) $15,000 B) $100,000 C) $135,000 D) $115,000
If the government of a country with a zero trade balance started with a budget deficit and moved to a budget surplus, domestic investment would
a. rise and there would be a trade surplus. b. rise and there would be a trade deficit. c. fall and there would be a trade surplus. d. fall and there would be a trade deficit.
If a firm faces a downward-sloping demand curve, then:
A. the firm could be either a perfectly competitive firm or an imperfectly firm. B. it is a perfectly competitive firm. C. the firm's marginal revenue from selling an additional unit of output is less than price. D. the firm's production process exhibits economies of scale.