GDP equals $5 trillion. If consumption equals $3.5 trillion, investment equals $1 trillion, and government spending equals $1.5 trillion, then:
a. exports exceed imports by $1 trillion.
b. imports exceed exports by $1 trillion.
c. net exports equal zero
d. exports exceed imports by $1.5 trillion.
b
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Ceteris paribus, expanding loans made by the commercial banking system: a. changes the composition, but not the magnitude, of the money supply. b. decreases the money supply
c. increases the money supply. d. would help to stabilize an economy experiencing rapid inflation.
In the U.S., health care may be expensive, but Americans enjoy the longest life-expectancy of any nation
a. True b. False Indicate whether the statement is true or false
The economist assumes that people act in accordance with the equimarginal principle, because the economist assumes that people are
a. altruistic. b. selfish. c. rational. d. price takers.
Suppose a roll of paper towels costs $6 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $3 and is $6 to Big Supplies, which of the following is true?
A) It is cheaper for the consumer to buy the paper towels at Big Supplies. B) It is more expensive for the consumer to buy the paper towels at Big Supplies. C) The consumer is indifferent as to where they buy the paper towels. D) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.