Which of the following is true of a net debtor nation?
a. It experiences a trade surplus for five consecutive years.
b. It experiences a trade deficit for five consecutive years.
c. It owes more to the rest of the world than it is owed.
d. It owes less to the rest of the world than it is owed.
e. It experiences persistent current account surplus.
c
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Which of the following is a predictable side effect of increased government activity (for example, taxes and subsidies) designed to redistribute income among citizens?
a. improvement in the operational efficiency of government agencies b. rapid economic growth c. a reduction in the amount of lobbying d. an increase in rent-seeking activity
If a farmer rents the land he works on, then any price support or deficiency payments he receives __________ capitalized into the value of that land, and so his economic profit from farming __________
A) are; goes to zero B) are; remains positive C) are not; goes to zero D) are not; remains positive