An increase in real net exports leads to an increase in real GDP. Further
A. real consumption spending and real saving increase.
B. real consumption spending increases while real investment spending decreases.
C. real consumption spending increases but real saving does not change.
D. real government spending decreases to offset the increase in real net exports.
Answer: A
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To maximize her utility, Pat should spend all of her money and buy goods in a way that
A) the marginal utility of the last unit of each good is the same. B) the marginal utility per dollar from each good is the same. C) her total expenditure on each good is the same. D) her price elasticity of demand for each good is the same.
Currently, the United States is both a net borrower and a debtor nation
Indicate whether the statement is true or false
Refer to Table 3-5. The table contains information about the corn market. Use the table to answer the following questions
a. What are the equilibrium price and quantity of corn? b. Suppose the prevailing price is $9 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is $9 per bushel? e. If the market price is $9 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 24,000 bushels of corn? g. Suppose the market price is $21 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is $21 per bushel? j. If the market price is $21 per bushel, what must happen to restore equilibrium in the market?
When production creates external costs greater than external benefits, a market is:
A. producing a socially optimal quantity of the product. B. allocating too few resources to production of the product. C. allocating too many resources to production of the product. D. not producing the product without government intervention.