If the Value of a Nation's Merchandise Exports Exceeds Merchandise

question 143

Multiple Choice

If the value of a nation's merchandise exports exceeds merchandise imports, the nation is running a

• A) capital account deficit.
• B) capital account surplus.
• C) balance of trade surplus.
• D) balance of trade deficit.

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Definitions:

Degrees of Competition

The extent to which market competition exists, characterized by the number of firms, product differentiation, and barriers to entry.

Pure Monopoly

A market structure where a single seller controls all of a product's supply and can set prices without competition.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and easy entry and exit, leading to perfect competitive markets.

Differentiated Oligopoly

A market structure where a few firms dominate, but differentiate their products through branding, quality, or other means to compete.