A trade surplus results when the world supply curve is below the domestic economy's price level.
Answer the following statement true (T) or false (F)
False
A trade deficit is created when the world supply curve is below the domestic economy's price level and this has been the case in the United States for the past 20 years.
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When estimating incremental environmental costs, the survey approach
a. relies on expert knowledge about abatement technology b. is a more direct means of gathering abatement cost data than the engineering approach c. finds the level of abatement expenditures based on least-cost technology d. suffers from no inherent biases associated with polluting sources
Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?
A) imports increase, domestic production increases, prices increase B) imports decrease, domestic production increases, prices increase C) imports decrease, domestic production increases, prices decrease D) imports increase, domestic production decreases, prices decrease
In the midst of the Great Depression, President Roosevelt in a radio address to the nation encouraged everyone to "spend ourselves into prosperity." His advice reflected
A) Say's Law. B) the expenditure multiplier effect. C) his view that there should be no saving and no dissaving. D) his view that induced expenditure was less important than autonomous expenditure. E) the difference between actual aggregate expenditure and planned aggregate expenditure.
According to the graph shown, if this economy were to open to trade, the amount consumed domestically would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. increase by 35.
B. increase by 90.
C. decrease by 35.
D. decrease by 90.