When government revenue exceeds government spending, the nation has a:
A. trade surplus.
B. government budget deficit.
C. government budget surplus.
D. trade deficit.
Answer: C
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Why might a firm remain in operation even if it is earning zero economic profit?
What will be an ideal response?
China linked its exchange rate to the U.S. dollar which meant in the 2004-2007 period
A) it appreciated against most other currencies, hurting its manufacturing competitiveness. B) it depreciated against most other currencies, making its products cheaper. C) it decreased the size of its merchandise trade surplus. D) it overvalued its currency, making it hard to attract foreign investment.
If there is a negative externality involved in producing good X, then
A. engaging in international trade will solve the inefficiency. B. a subsidy to the producer of good X can correct the inefficiency involved. C. the production possibility curve will be too steeply sloped toward good X. D. None of these is true.
When does the advertisers' dilemma occur?
What will be an ideal response?