Whenever exports exceed imports (and other planned injections equal other planne

Question

Whenever exports exceed imports (and other planned injections equal other planned leakages), the economy
a. remains stable
b. expands
c. contracts
d. deflates

If the government finances its spending through taxes which absorb idle funds that were not going to be spent by the private sector, a balanced budget can have an expansionary effect.
True
False

Accumulation and depletion of inventories affect the circular flow of income.
True
False

In the long run, under conditions of perfect competition, market forces come into play to
a. enhance profits
b. increase demand
c. eliminate profits
d. separate MR and AR


Under conditions of perfect competition, short-run equilibrium does not necessarily exist where
a. profit is maximized or loss minimized
b. MR = AR
c. MR = MC
d. MR = ATC

Explanation / Answer

c. contracts False b. increase demand a. profit is maximized or loss minimized

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.