If the United States has a trade deficit with China, then China must have
A) a trade surplus with countries other than the United States.
B) a trade surplus with the United States.
C) a trade deficit with countries other than the United States.
D) a trade deficit with the United States.
B
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Refer to Scenario 12.2. Suppose that the marginal cost falls such that: MC = Q - 10 What is the profit maximizing price?
A) 205.72 B) 240 C) 210 D) all of the above E) none of the above
Which of the following is a normative economic statement?
a. The unemployment rate for the United States is currently 5.4 percent. b. The inflation rate in the United States is too high. c. An increase in the price of a good will reduce the amount purchased. d. Higher profits in an industry will attract more entrepreneurs into the industry.
If an economist recommends that the government reduce the tax rate in order to increase tax revenues (based on the Laffer curve), she is implicitly assuming that the economy is currently operating at a point
A) inside the Laffer curve. B) outside the Laffer curve. C) on the upward-sloping portion of the Laffer curve. D) on the downward-sloping portion of the Laffer curve. E) where tax revenues are maximized.
A basic characteristic of a command system is that:
a. Government owns most economic resources b. Wages paid to labor are higher c. Government planners play a limited role in deciding what goods will be produced d. Free markets are never permitted in a command economy