If its exports are greater than its imports, then a country has a:
A. government budget surplus.
B. trade surplus.
C. government budget deficit.
D. trade deficit.
Answer: B
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NAFTA refers to a 1994 agreement that eliminated most tariffs among which countries?
A) the United States, Mexico, and Cuba B) the United States, the United Kingdom, and Mexico C) Canada, the United Kingdom, and Mexico D) the United States, Canada, and Mexico
Which of the following are considered market failures?
A. Monopoly. B. Externalities. C. The lack of public goods and services. D. All of the choices are considered market failures.
If the cross-price elasticity of two goods is positive, then the two goods are
a. substitutes. b. complements. c. normal goods. d. inferior goods.
A consumer has preferences over two goods, X and Y. Suppose we graph this consumer's preferences (which satisfy the usual properties of indifference curves) and budget constraint on a diagram with X on the horizontal axis and Y on the vertical axis. At the consumer's current consumption bundle, the consumer is spending all available income, and the marginal rate of substitution is less than the
slope of the budget constraint. We can conclude that the consumer a. is currently maximizing satisfaction subject to the budget constraint. b. could increase satisfaction by consuming more X and less Y. c. could increase satisfaction by consuming less X and more Y. d. could purchase more X and more Y and increase total satisfaction.