Suppose Country A had net taxes of $30 million and government expenditures of $35 million. In addition, household saving in Country A totaled $5 million while consumption was $80 million
The government of Country A is running a budget ________ and national saving is ________ million. A) surplus; $5
B) deficit; -$5
C) deficit; $0
D) surplus; $25
C
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Which of the following shifts the supply curve for oranges?
A) disastrous weather that destroys about half of this year's orange crop B) a newly discovered increase in the nutritional value of oranges C) an increase in the price of bananas, a substitute in consumption for oranges D) an increase in income for all orange consumers
In the long run, imports will most likely be paid for with
A) exports. B) the sale of real and financial assets. C) the extension of credit. D) higher domestic unemployment.
If a country's goods exports are less than its goods imports, then it experiences a:
a. balance of payments surplus. b. balance of payments deficit. c. balance of trade surplus. d. balance of trade deficit.
Free trade is a zero-sum activity because a country always gains at the expense of its trading partner.
Answer the following statement true (T) or false (F)