Which of the following statements is correct for an open economy with a trade surplus?
a. The trade surplus cannot last for very many years.
b. The trade surplus must be offset by negative net capital outflow.
c. The trade surplus implies that the country's national saving is greater than domestic investment.
d. None of the above is correct.
c
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Jodie has indifference curves for CDs and colas, with CDs on the vertical axis. The flatter her indifference curves are, the
A) smaller her average rate of substitution. B) larger her average rate of substitution. C) smaller her marginal rate of substitution. D) larger her marginal rate of substitution.
Ignoring taxes when making redistributive decisions has no impact on equity.
A. True B. False C. Uncertain
If Joel buys ten floppy disks, which are worth a total of $30 to him, and he pays $1 a disk, how much consumer surplus does he derive?
a. $24 b. $15 c. $20 d. $10 e. $2 from each floppy disk
If the labor supply and demand curves cross at a wage of $20,
a. a wage rate of $10 per hour would lead to an excess demand for labor b. a wage rate of $10 per hour would lead to an excess supply of labor c. that wage causes a high rate of cyclical unemployment d. employees are overpaid e. a wage rate of $10 per hour would mean there is a significant amount of structural unemployment