The main economic rationale for government provision of services is

We know that increases in population increase the market demand for various goods. The prices of those goods will increase the most if the elasticity of supply is

a. very large b. equal to one c. greater than 3 d. very small e. finite

A favorable balance of trade occurs when

a. merchandise exports are greater than merchandise imports b. merchandise imports are greater than merchandise exports c. international trade is an increasing share of total output d. the balance on capital account equals the balance on current account e. unilateral transfers are positive