A nation's trade deficit will tend to expand when
a. its economy is expanding.
b. its economy is shrinking.
c. its investment environment is less attractive to foreigners.
d. both b and c above are true.
A
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The theory of the firm is based on the following two key assumptions:
a) Firms seek to maximize profits, and the firm is a single, consistent decision-making unit. b) Firms seek to become as large as possible, and they seek to maximize total revenue. c) Firms seek to maximize revenues, and to maximize undistributed profits. d) Each firm has a highly diversified product, and this leads to profit maximization. e) Firms seek to maximize profit, and to distribute the maximum value in dividends.
A mixed capitalist economy is one in which
a. decisions are based primarily on religion or custom b. all resources are publicly owned and economic planning is centralized c. all resources are privately owned and prices are used to coordinate economic activity d. resources are both publicly and privately owned and some markets are regulated e. all resources are publicly owned and prices are used to coordinate economic activity