Practice Exercise 2

3. entails selling products to foreign customers.
6. When overall prices go up.
7. Policy uses the government’s power to spend and tax.
8. Debt the total amount of money owed by the federal government
11. Policy is used to control the money supply and interest rates.
12. The quantity of a product that sellers are willing to sell at various prices.
13. advantage occurs when a country can produce a product at a lower cost.
16. The quantity of a product that buyers are willing to purchase at various prices.

1. Only one seller in the market.
2. When overall prices go down.
4. are restrictions on imports.
5. The price at which buyers are willing to buy the same amount that sellers are willing to sell.
9. advantage occurs when a nation is the only producer of a particular product.
10. involves purchasing products from other countries.
14. Difference between the revenue that a company brings in from selling goods and services and the costs of generating this revenue.
15. are taxes on imports.