?Which of the following is not true about the U.S. trade balance since 1979?
a. The balance of trade has been in deficit.
b. During recessions the balance has usually been flat.
c. The balance of trade has been in surplus.
d. When the economy expanded, the demand for imports increased.
e. When the economy expanded, the trade balance worsened.
Answer: c. The balance of trade has been in surplus.
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If the quantity of Good Y is measured on the vertical axis, the quantity of Good X is measured on horizontal axis, the price of Good X is $50, the price of Good Y is $20, and the budget is $500, the vertical intercept of the budget line is
A. 25, the horizontal intercept is 10, and the slope is -0.4. B. 20, the horizontal intercept is 50, and the slope is -0.4. C. 10, the horizontal intercept is 25, and the slope is -2.5. D. 50, the horizontal intercept is 20, and the slope is -2.5.
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