A country that has a trade surplus:
A. imports more than it exports.
B. has a negative trade balance.
C. sells more goods abroad than it buys from abroad.
D. buys more goods at home that it buys abroad.
C. sells more goods abroad than it buys from abroad.
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Countries are concerned about small changes in their average annual growth rates in per capita income because
A) growth rates are a factor in U.N. participation. B) the power of compounding means small changes have large effects over time. C) growth rates tend to decline over time. D) the faster a country grows today, the less it will be able to consume in the future.
The supply-side effects of a change in taxes on labor income means that ________ in taxes on labor income shifts the ________
A) an increase; labor supply curve leftward B) a decrease; labor demand curve rightward C) an increase; labor supply curve rightward D) a decrease; labor demand curve leftward E) an increase; labor supply curve leftward and the labor demand curve rightward
Would each of the following groups be happy or unhappy if the Mexican peso appreciates against the U.S. dollar? Answer the question for each of the following:
(a) The U.S. pension funds holding Mexican government bonds (b) U.S. tourists planning a trip to Mexico (c) Mexican exporting manufacturers (d) A Mexican firm trying to buy properties overseas
What are the major sources of risk for the firm?
What will be an ideal response?