A trade deficit occurs when:
a. a country imposes a price floor on the good in which it has a comparative advantage.
b. a country's imports exceed its exports.
c. a country imposes a price ceiling on the good in which it has a comparative advantage.
d. a country's exports exceed its imports.
e. the domestic product market is in disequilibrium.
b
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The stated interest rate on a loan is the
A) nominal interest rate. B) real interest rate. C) actual inflation rate. D) expected inflation rate.
Debbie was earning $100,000 a year working as a scientist for a drug company. She decided to start her own business that conducted drug trials. She estimates this entrepreneurial talent or forgone entrepreneurial income to be $10,000 a year. She used
$500,000 in savings that earned 5 percent interest annually to finance the new business. In the first year, the firm earned revenue of $1,500,000. The costs for rent, supplies, and employees’ salaries were $1,100,000. What was the accounting profit for the new business? What was the economic profit (or loss)? Explain your calculations for both questions. Please provide the best answer for the statement.
If the quantity demanded is infinitely responsive to any change in price, the demand curve is:
A. upward sloping. B. downward sloping. C. horizontal. D. vertical.
Which of the following is considered a microeconomic issue?
A. The unemployment rate in Greece is 22.8 percent. B. The economic growth rate was reported at 2.4 percent in the first quarter of 2013 for the United States. C. The country of Zimbabwe has experienced a decline in inflation. D. The local university decides to raise tuition for online course offerings.