Which of the following is the best definition of openness?
a. The average of imports expressed as a share of GDP.
b. The average of goods traded in markets expressed as a share of GDP.
c. The average of imports and exports expressed as a share of GDP.
d. The average trade balance expressed as a share of GDP.
e. The average of exports expressed as a share of GDP.
c
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Recall the Application. By the end of the last phase of quantitative easing in late 2014, that value of the Fed's assets was
A) $1 trillion. B) $2 trillion. C) $3 trillion. D) $4.5 trillion.
A production subsidy combined with free trade
A) has the same deadweight costs as a tariff. B) has only consumption deadweight costs. C) has only production deadweight costs. D) None of the above.
If on Tuesday the perceived price of studying for an exam is $4 per hour but on Saturday the perceived price of studying for an exam is $10, the law of demand predicts
A) more studying on Saturday and less on Tuesday. B) more studying on Tuesday and less on Saturday. C) the same amount of studying on Tuesday and Saturday. D) no studying on Tuesday or Saturday.
Suppose two goods coffee and creamer provide the consumer with utility but only if they are consumed in fixed proportions. An increase in the price of coffee will yield
a. a substitution effect and an income effect in opposite directions. b. a substitution effect and an income effect in the same direction. c. a substitution effect but no income effect. d. an income effect but no substitution effect.