When total spending is less than production, GDP will decrease.
Answer the following statement true (T) or false (F)
True
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In the short-run, real GDP can be greater than or less than potential GDP because in the short run the
A) money wage rate is fixed. B) quantity of capital is fixed. C) full-employment level of employment is fixed. D) price level is fixed.
The table above gives the market share of sales of firms in the retail clothing market. What is the four-firm concentration ratio?
A) 70 percent B) 100 percent C) 85 percent D) 65 percent
What is the welfare impact of a subsidy policy?
A) Producer surplus increases, consumer surplus declines, and total welfare declines. B) Producer and consumer surplus increase, and these gains are larger than the government cost. C) Producer and consumer surplus increase, and these gains are smaller than the government cost. D) Producer surplus increases, consumer surplus declines, and total welfare increases due to the subsidy program.
The contention that specific sensitive domestic technologies must not be traded freely is
A) a national defense concern. B) the infant industry argument. C) dumping. D) to protect domestic jobs.