What happens in the short run when people in a country purchase more imported goods and few domestic goods? a) the trade balance will be unaffected and the equilibrium income will decrease b) the trade balance moves toward a surplus and the equilibrium income will decrease. c) the trade balance moves toward a deficit and the equilibrium income will decrease. d) the trade balance moves toward a deficit and the equilibrium income will increase.

The correct answer is letter "C": The trade balance moves toward a deficit and the equilibrium income will decrease.

Explanation:

If in an economy people import more products than the quantity they export, the trade balance will fluctuate towards imports. This will cause domestic products to be less demanded. As fewer domestic production is needed, less labor hand will be necessary which leads to an increasing rate in unemployment and a decrease in people's income.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

these are the four factors that influence enterpreneurship development

1. economic development

2. culture

3.technological development

4. education