Under the Simplifying Assumptions Made in the Text, a Current

question 40

Multiple Choice

Under the simplifying assumptions made in the text, a current account surplus exists when

• A) net exports are positive.
• B) net exports are negative.
• C) financial flows out of a country for goods and services exceeds financial flows into the country for its goods and services.
• D) imports exceed exports.

Interpret the significance of entry barriers and their absence in pure competition.

Comprehend the relationship between demand curves, marginal revenue, and elasticity in purely competitive markets.

Understand the inability of influencing market price by individual firms in pure competition.

Explain the relationship between average revenue, total revenue, and the pricing mechanism in pure competition.

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Flu Pandemic

A worldwide outbreak of influenza, such as the H1N1 pandemic in 2009, which spreads quickly and affects a large proportion of the population.

Electoral College

The body of electors established by the Constitution of the United States that officially elects the President and Vice President based on the popular vote within each state.

Direct Democracy

A form of democracy in which people decide on policy initiatives directly, contrasting with representative democracy.

U.S. Senators

are elected officials who represent their states in the United States Senate, one of the two chambers of the United States Congress, with two senators per state.