If a firm makes production decisions such that it achieves maximum output from a fixed stock of resources, this means that this firm is
a. achieving allocative efficiency c. earning a normal profit
b. earning a positive economic profit d. technically efficient
d. technically efficient
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Last year in a small economy, consumption spending was $12,000, investment spending was $3,500, government spending was $4, 000, exports were $1,150, and imports were $1,350. What was GDP for this economy last year?
What will be an ideal response?
How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection, in what country would you expect to have a longer life expectancy, the United States or India? Explain
What will be an ideal response?
If a developing country institutes a currency board, it relinquishes control over having
A) monetary policy autonomy. B) exchange rate stability. C) freedom of capital movement. D) freedom of labor movement. E) all of its funds.
Assuming imperfect capital mobility and a fixed exchange rate, then an expansionary monetary policy
a. results in a balance of payments surplus without a conflict between domestic goals and external balance. b. results in a balance of payments deficit with a potential conflict between domestic goals and external balance. c. will shift the LM curve to the left. d. will have no effect on the balance of payments.