Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth

question 11

Multiple Choice

Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following observations is true of the federal budget between 1960 and 2010?

• A)The federal budget was in deficit in the early 1960s.
• B)Between 1960 and 1970 the federal budget deficit reflected a sharp increase.
• C)The federal budget was in surplus between 1970 and 1980.
• D)The federal budget deficit was the highest in the late 1990s.
• E)The federal budget deficit was lower than 600 billion dollars in 2010.

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Definitions:

Benchmark Pricing

A method of pricing where a standard or reference price is used to set or compare the price of goods and services.

Similar Products

Goods that serve comparable purposes or needs and can be considered substitutes for each other by consumers.

Short Run

A period in economics during which at least one factor of production is fixed, limiting the ability of the economy or firm to adjust.

Long Run

A time frame in economics where all factors of production can be varied, allowing for full adjustment to changes.