Which of the following statements is incorrect for an open economy?
a. A country can have a trade deficit, trade surplus, or balanced trade.
b. A country that has a trade deficit has positive net capital outflow.
c. Net exports must equal net capital outflow.
d. National saving equals domestic investment plus net capital outflow.
b
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As we observe the cost curves graph, we see that the
A) MC curve intersects the ATC curve at its maximum. B) MC curve cannot be U-shaped. C) ATC curve always has a negative slope. D) MC curve intersects the AVC curve and ATC curve at their minimums. E) MC constantly falls as output increases.
When a labor union confronts a monopsonist, the result is that union workers receive a wage
a. greater than their marginal labor cost b. that maximizes the return to monopsony power c. equal to a perfectly competitive labor market d. below the labor supply curve e. equal to the marginal revenue product