Net exports equals the balance of trade surplus
Indicate whether the statement is true or false
FALSE
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In Chapter 11, the production function variable A has been given several different names. Which of the following is NOT one of them?
A) autonomous growth factor B) infrastructure C) multifactor productivity D) residual
According to the search model, the marginal cost of acquiring information about a product
a. is greater for a doctor than a nurse's aide b. is the same for high-income consumers as for low-income consumers c. is greater for expensive items than for cheap items d. is greater for cheap items than for expensive items e. diminishes as more information is acquired
Consider the budget constraint between "spending today" on the horizontal axis and "spending a year from today" on the vertical axis. Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. Suppose now that the interest rate decreases to 10%. What happens to the
slope of your budget constraint relative to when the interest rate was 25%? The slope a. becomes steeper. b. becomes flatter. c. doesn't change because the budget constraint shifts in parallel to the original budget constraint. d. doesn't change because the budget constraint shifts out parallel to the original budget constraint.
Refer to Figure 9-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports?
A) 5 units B) 10 units C) 15 units D) 20 units