If the price level in the United States increases relative to prices in foreign countries, then
A. imports and exports of the United States will increase.
B. imports and exports of the United States will decrease.
C. imports of the United States will decrease and exports of the United States will increase.
D. imports of the United States will increase and exports of the United States will decrease.
Ans: D. imports of the United States will increase and exports of the United States will decrease.
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How is national output related to national income?
A) Income is greater than output during recoveries and booms. B) Income is greater than output during recessions and depressions. C) Output exceeds income by the amount of unsold goods. D) They are always equal. E) They are only equal when the economy is in equilibrium.
A cartel is
A. a group of consumers that bid against each other for the same product. B. an arbitrator to settle disputes between consumers and producers. C. a government agency that regulates markets. D. a group of producers that agree to set common prices and output quotas.