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b. a country’s exports e… Show more (1) A trade deficit oc

b. a country’s exports e… Show more (1) A trade deficit occurs when: a. a country’s imports exceed its exports. b. a country’s exports exceed its importsc. c. when the domestic product market is in disequilibrium. d. d. a country imposes a price ceiling. e. a country imposes a price floor. ————————————————– (2) The market process by which new products and new firms replace existing products and firms is called: a. capital replacement. b. technology transfer. c. marginal rate of substitution. d. creative destruction. e. market saturation. ———————————————— (3) In a market system, which of the following factors determines a consumers’s ability to pay for a good or service? a. Cost of production b. Technology c. Consumer’s income d. Market supply e. Consumer’s wants ————————————————– (4) Which of the following does not constitute a household consumption item? a. A packet of breakfast cereals b. A pair of jeans c. A bottle of Beck’s beer d. An electronic scanning machine e. A haircut ——————————————————- An import is defined as: a. a sale of goods or services to another nation. b. a business transaction between two or more domestic firms. c. a tariff on foreign merchandise. d. a trade agreement between two industrial countries. e. a purchase of goods or services from another country. ————————————————– A surplus in a country’s trade balance means that: a. net exports exceed transfer payments. b. the country’s currency is over-valued. c. imports into the country exceed exports. d. domestic savings exceeds domestic investment. e. the value of net exports is positive. —————————————————– Loading question… A trade deficit occurs when: a. a country’s imports exceed its exports. b. a country’s exports exceed its imports. c. when the domestic product market is in disequilibrium. d. a country imposes a price ceiling. e. a country imposes a price floor. Hide FeedbackShow All Feedback Check My Work Feedback Post Submission Feedback Solution —————————————————– Which of the following is not considered a financial intermediary? a. A credit union b. An investment bank c. A savings and loan association d. The U.S. Department of Commerce e. A commercial bank Hide FeedbackShow All Feedback Check My Work Feedback Post Submission Feedback Solution —————————————————- The figure given below represents the circular flow of income between households, firms, financial intermediaries, and foreign countries. Figure 4.2 Refer to Figure 4.2. Calculate the total amount of consumption expenditure. a. $42,500 b. $10,000 c. $7,500 d. $35,000 e. $25,000 Hide FeedbackShow All Feedback Check My Work Feedback Post Submission Feedback Solution Hide FeedbackShow All Feedback Check My Work Feedback Post Submission Feedback Solution Hide FeedbackShow All Feedback Check My Work Feedback Post Submission Feedback Solution • Show less

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