GDP equals $8 trillion. If consumption equals $5.5 trillion, investment equals $500 billion, and government spending equals $1.5 trillion, then:
a. exports exceed imports by $500 billion.
b. imports exceed exports by $500 billion.
c. net exports equal zero
d. exports exceed imports by $1 trillion.
a
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Which of the following is NOT a reason why a monopoly might be regulated?
A. To reduce the inefficiency associated with profits B. To limit prices in important markets with economic or political consequences C. To deal with the negative consequences of government-created monopolies D. To ensure that a good is produced at least cost
An effective price ceiling occurs when
A) the government sets a maximum price for a good above the equilibrium price. B) the government sets a minimum price for a good above the equilibrium price. C) the government sets a minimum price for a good below the equilibrium price. D) the government sets a maximum price for a good below the equilibrium price.
The presence of positive externalities _____ justify the current structure of government programs for higher education.
A. should B. does C. should not D. does not
The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is
A) inefficient market hypothesis. B) moral hazard. C) information disparity. D) asymmetric information.