Table 36-2 ​

question 61

Multiple Choice

Table 36-2
​
-From Table 36-2, what can you conclude about net exports as GDP rises?

• A)Net exports rise and then fall as GDP rises.
• B)Net exports are constant as GDP rises.
• C)Net exports rise as GDP rises.
• D)Net exports fall as GDP rises.

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Definitions:

Profit-maximizing

The process or goal of adjusting the production and sale of goods or services to achieve the highest possible profit.

Quantity Discounts

Price reductions given to buyers purchasing large quantities, intended to encourage bulk buying.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar, leading to prices being determined by supply and demand.

Marginal Cost

The cost incurred by producing one additional unit of a good or service.