In a closed economy, without the government, the consumption expenditure equals $5,000 and the investment expenditure equals $2,000.What is the national income of the economy?
A) $2,000
B) $5,000
C) $7,000
D) $10,000
Answer: C) $7,000
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Of the following types of games, tension between cooperation and individual self-interest tends to be greatest in
A) an assurance game. B) a pure coordination game. C) a chicken game. D) a battle of the sexes game.
Game theory is most useful for determining the outcome when ________
A) the market structure is oligopoly B) monopolistic competition exists C) prison terms are involved D) the market is dominated by a monopoly
If net exports are equal to net foreign investment, which of the following is not true?
A) The balance on the financial account is zero. B) The current account balance is equal to the negative of the financial account balance. C) Net capital inflows are equal to imports minus exports. D) The balance of payments is zero.
The ratio of a country's average export price to its average import price is
(a) its absolute advantage. (b) its comparative advantage. (c) its terms of trade. (d) its exchange rate.