We say that the United States has a trade surplus when:
A. U.S. imports are less than U.S. exports
B. U.S. tax revenues are greater than U.S. government spending
C. U.S. income is greater than U.S. spending
D. U.S. spending is less than U.S. savings
A. U.S. imports are less than U.S. exports
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With price on the vertical axis and quantity on the horizontal axis, economists would draw an increase in supply as
A) a leftward shift in the supply curve. B) a rightward shift in the supply curve. C) a vertical supply curve. D) any which way we like.
If a monopolist owns or controls a key resource necessary for production, it is a source of:
A) legal market power. B) natural market power. C) regulated market power. D) restricted market power.
In the above figure, if household consumption is positively related to household income, then an increase in household income will
A) shift the line rightward. B) shift the line leftward. C) make the line positively sloped. D) cause a movement along the line.
Some economists believe that the economy benefits from firms having market power. Which of the following is an argument that has been made to support this position?
A) Large firms are better able than small firms to spend funds on research and development required to develop new products. B) Competition is very rare in the U.S. economy and few new products are produced by smaller, competitive firms. C) Research has shown that the deadweight loss from monopolies is a small percentage of the value of production in the United States. D) Large firms can afford to lobby the U.S. government in order to impose restrictions on imports and reduce the outsourcing of jobs to other countries.