A Balance of Payments Deficit Occurs When ______

question 57

Multiple Choice

A balance of payments deficit occurs when ______.

• A) imports exceed exports
• B) the net inflow of money from abroad exceeds the net outflows of money to other countries
• C) exports exceed imports
• D) the net outflow of money from a country exceeds the net inflow of money from abroad

Interpret scatterplots, including form, direction, strength, and the addition of categorical variables.

Recognize the importance of having positive values for logarithmic transformations.

Describe relationships between variables using scatterplots, including identifying linear, quadratic, and cubic relationships.

Understand the concept of "direction" in scatterplots as it relates to positive and negative associations.

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Definitions:

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, with little government intervention.

Market Equilibrium

A situation in which market supply equals market demand, so there is no incentive for price changes unless external conditions change.

Great Depression

A severe worldwide economic downturn during the 1930s, marked by prolonged unemployment, deflation, and significant declines in economic activity.

Economic Principle

Fundamental concepts that underpin the study and practice of economics, such as supply and demand or the cost-benefit analysis.