A country recently had GDP of $1,200 billion. Its consumption expenditures were $700 billion, its government spent $200 billion, and it had domestic investment of $175 billion. What was the value of this country's net capital outflow? Show your work
Y = C + I + G + NX
$1,200 billion = $700 billion + $175 billion + $200 billion + NX
$125 billion = NX
NX = NCO = $125 billion
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Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The amount of the tax paid by the consumer is
A. $8. B. $1. C. $3. D. $2.
Refer to Figure 9.1. At what price and quantity combination is profit maximized?
A. Q = 50; P = $5
B. Q = 50; P = $15
C. Q = 85; P = $10
D. Q = 85; P = $15
Which of the following is an example of structural unemployment?
A. Alan, a software engineer, lost his job when the internet startup he worked for went bankrupt. He interviewed with five companies in the area before taking a job with another firm in the industry. B. Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year. C. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. D. Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before finding a new job that he liked.
If an economist finds that when consumer incomes increase, consumers buy more cars, Ceteris paribus, then
A. the price of cars must be decreasing. B. all other things remain constant. C. the price of gas must be decreasing. D. the interest rate on car loans must be decreasing.