When the value of exports exceeds the value of imports then
A. the country is running a trade deficit.
B. changes in productivity will occur.
C. the country is running a trade surplus.
D. international trade is in balance.
Answer: C
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Since Germany is a large open economy, the increase in German borrowing and investment in what was formerly East Germany in the early 1990s resulted in
A) a decline in the world real interest rate. B) a shift to the right in the German supply of loanable funds curve. C) an increase in the real interest rate in the United States. D) a shift to the left in the German demand for loanable funds curve.
Economists consider the model of perfect competition useful because:
a. it is a standard for analyzing producer and consumer benefits. b. its assumptions exactly fit into actual conditions in some markets. c. its assumptions can be easily replaced with realistic ones. d. it is a standard for analyzing consumer choices.
A market in which a small number of strategically interdependent firms produce the dominant share of output is called
a. perfect competition b. a monopoly c. monopolistic competition d. regulated e. an oligopoly
If a change in real GDP causes the price level to change, there will be a movement along the aggregate supply curve
a. True b. False