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(1) A trade deficit occurs when: a. a country\'s imports exceed its exports. b.

ID: 1179297 • Letter: #

Question

(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.

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(2) The market process by which new products and new firms replace existing products and firms is called:

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(3) In a market system, which of the following factors determines a consumers's ability to pay for a good or service?

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(4)

  

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e. a purchase of goods or services from another country.

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a. capital replacement. b. technology transfer. c. marginal rate of substitution. d. creative destruction. e. market saturation. SuperbFarm4520 A trade deficit occurs when: a country's imports exceed its exports. a country's exports exceed its importsc. when the domestic product market is in disequilibrium. d. a country imposes a price ceiling. a country imposes a price floor.

Explanation / Answer

1. trade deficit is.... (b) imports > exports

2. replacing existing products and firms.... (a)

3. market system consumer ability to pay for goods/services.... (c)

4. not a household consumption item.... (d)

5. import.... (e)

6. surplus in country's trade balance,...(e)

7. trade deficit is....(a) imports > exports

8. not a financial intermediary...(d) us dept of commerce

9. amount of consumption,,,(d) $35,000