A Country's Imports

question 2

Multiple Choice

A country's imports

• A)stimulate the imports of other countries.
• B)have no affect on its exports.
• C)have no relationship with its balance of payments.
• D)affect its exports and exports affect its imports.
• E)over time will decrease its overall economic activity.

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Definitions:

Diseconomies Of Scale

The situation when a firm's costs per unit increase as it produces more output, opposite of economies of scale.

ATC Curve

A graphical representation of the average total costs of production at different levels of output in economics.

AVC Curve

The average variable cost curve, which shows a firm's average variable costs of production at different levels of output.

Parkinson's Law

The adage that "work expands to fill the time available for its completion," suggesting efficiency decreases as the amount of time allocated to a task increases.