If Incomes in the United States Increase,other Things Equal,then U

question 76

Multiple Choice

If incomes in the United States increase,other things equal,then U.S._____.

• A)imports increase and exports remain constant
• B)exports increase and imports decrease
• C)imports decrease and exports decrease
• D)imports remain constant and exports increase
• E)net exports remains constant

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Definitions:

Short Run

A period of time during which at least one of a firm's inputs is fixed and cannot be changed.

Normal Return

The minimum profit necessary to keep a company in business, equating to the opportunity cost of capital.

Own Capital

The funds or assets personally invested by the owners into a business, distinct from borrowed capital.

Economic Profit

The separation between full-scale income and aggregated expenses, acknowledging both straightforward and underlying costs.