Which of the following is true of U.S. net exports prior to the 1960s?
a. Since most of the oil needs of the U.S. were met through imports, imports exceeded exports prior to the 1960s in the U.S.
b. Prior to the 1960s, exports from the U.S. more or less equalled imports into the U.S.
c. The U.S. was running a trade surplus prior to the 1960s.
d. Prior to the 1960s, the U.S. ran twin deficits- both a current account deficit as well as a budget deficit.
e. Since the U.S. dollar was overvalued prior to the 1960s, the U.S. neither exported nor imported any goods and services.
Question 2When economists speak of markets, they primarily mean:
a. places where production of goods and services take place.
b. those locations where stocks and bonds of corporations take place.
c. mechanisms that coordinate actions of buyers and sellers.
d. the trillions of dollars that change hands in the foreign exchange markets.
Question 3An increase in net exports would lead to an increase aggregate demand but would not lead to an increase in aggregate supply.
a. True
b. False
Indicate whether the statement is true or false
Question 4According to Scenario 4-1, country B is running a:
a. trade deficit with country A and a trade surplus with country C.
b. trade surplus with both countries A and C.
c. trade surplus with country A and a trade deficit with country C.
d. trade deficit with both countries A and C.
e. balanced trade with country A and a trade deficit with country C.
Question 5Which of the following does not describe a pure market economy?
a. The choices of buyers and sellers determine the market prices of goods and services.
b. Prices serve as signals to buyers and sellers.
c. Prices and outputs of most goods and services are stable over time.
d. Owners of resources in greater demand by others tend to have higher incomes.
Question 6A change that shifted the long-run aggregate supply curve to the right would also shift the short-run aggregate supply curve to the right.
a. True
b. False
Indicate whether the statement is true or false
Question 7According to Scenario 4-1, country C has net exports of:
a. zero.
b. 13 million.
c. 6 million.
d. 13 million.
e. 6 million.
Question 8Which of the following is most limited in scope under a pure market economy?
a. Freedom of choice.
b. Consumer sovereignty.
c. Entrepreneurship.
d. Government.
Question 9Both short and long-run aggregate supply curves can shift to the right if entrepreneurial activities lower costs of production and expand what can be produced.
a. True
b. False
Indicate whether the statement is true or false
Question 10According to Scenario 4-1, country A has net exports of:
a. 18 million.
b. 8 million.
c. 13 million.
d. 9 million.
e. 6 million.
Question 11The private ownership of property and the use of the market system to direct and coordinate economic activity is most characteristic of:
a. a command economy.
b. a mixed economy.
c. a market economy.
d. a traditional economy.
Question 12Increases in the burdens of government regulations can make production more costly for producers, shifting the short run aggregate supply curve left; it can also reduce potential output, shifting the long-run aggregate supply curve left.
a. True
b. False
Indicate whether the statement is true or false
Question 13The term net exports refers to:
a. the situation in which a country's exports exceed its imports.
b. the situation in which a country's imports exceed its exports.
c. the shortages that result when a country imposes a price ceiling.
d. the shortages that result when a country imposes a price floor.
e. the difference between the value of exports and the value of imports.
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