A trade surplus occurs when:
A. a country purchases more from abroad than other countries purchase from it.
B. a country sells more abroad than it purchases from abroad.
C. a country's firms open more stores abroad than foreign firms open in the country.
D. foreign firms open more stores in a country than the country opens in foreign countries.
Answer: B
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Which of the following is NOT a potential reason for wage differences by race or sex?
A) discrimination B) differences in human capital C) differences in the degree of specialization D) All of the above are potential reasons for wage differences by race or sex.
If the exchange rate of Euros to American dollars was €1.00 = $1.00 yesterday and today is €1.00 = $1.05, then:
(a) The euro appreciated in value relative to the American dollar. (b) The euro depreciated relative in value to the American dollar. (c) All things being equal, imports from the Eurozone to America are more expensive today than they were yesterday. (d) Both (a) & (c) are correct.
If one perfectly competitive firm is the only one to raise its price above the market price, it will:
A.) Sell some output, but less than previously. B.) Not sell any output. C.) Sell more output than previously. D.) Sell the same amount of output as previously.
If aggregate demand just increased, which of the following may have caused the increase?
A) an increase in government purchases B) an increase in the interest rate C) an increase in the price level D) an increase in imports