The Case of New Zealand,described in the Text,concludes That a Country's

question 142

Multiple Choice

The case of New Zealand,described in the text,concludes that a country's current account deficits are not sustainable if a country's

• A)prospects for long term economic growth are above its global deficit growth.
• B)ability to sustain current account deficits is questionable.
• C)unproductive industrial sectors and its prospects for long run growth.
• D)labor productivity is below that of most other countries.
• E)exchange rate has fallen relative to other currencies.

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Definitions:

MC

Short for Marginal Cost, it refers to the increase in total cost that arises from producing one additional unit of a good or service.

Minimum ATC

The point at which the average total cost of production is at its lowest, indicating the most efficient scale of production.

Demand Schedule

A table of numbers showing the amounts of a good or service buyers are willing and able to purchase at various prices over a specified period of time.

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs.