A nation has run a continually larger budget deficit for the last five years. Which of the following is probably not occurring in this nation? a) capital account surplus b) trade surplus c) nominal output growth d) rising interest rates e) inflation f) strong local currency Which of the following is the distinction between price takers and price searchers? a) Price takers must compete with rival sellers; price searchers do not confront rival sellers. b) Price takers cannot raise their price without losing all their sales, whereas price searchers can. c) Price takers make economic losses, whereas price searchers make economic profit. d) Price takers are small firms; price searchers are large firms.

  1. a, b, f 2 b


  1. B F 2. B What is capital account surplus ??

it’s a nations balance of payments negative capital account=deficit positive capital account=surplus

b b

1)B 2)B

why would a capital account surplus not be associated with a budget deficit?

Agree :slight_smile: I forgot what the question was as I was reading down the options. :slight_smile:

What’s wrong with (1) a?