For a closed economy, GDP is $11 trillion, consumption is $7 trillion, taxes are $2.5 trillion and the government runs a surplus of $1 trillion. What are private saving and national saving?
a. $1.5 trillion and $2.5 trillion, respectively
b. $2.5 trillion and $1.5 trillion, respectively
c. $2.5 trillion and $2.5 trillion, respectively
d. $1.5 trillion and $1.5 trillion, respectively
a
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Refer to Figure 13-1. Ceteris paribus, an increase in the price level would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
The branch of economics that studies the aggregate decisions of all households and all firms is called: a. positive economics
b. normative economics. c. microeconomics. d. macroeconomics.
The most common method used by the government to control negative externalities is
a. creation of private property rights b. obligatory controls c. taxation d. subsidization e. nationalization
ABC Company incurs a cost of 50 cents to produce a dozen eggs, while XYZ Company incurs a cost of 70 cents to produce a dozen eggs. Which of the following price increases would cause both companies to experience an increase in producer surplus?
a. The price of a dozen eggs increases from 40 cents to 55 cents. b. The price of a dozen eggs increases from 55 cents to 70 cents. c. The price of a dozen eggs increases from 55 cents to 75 cents. d. All of these price increases would cause both companies to experience a loss in producer surplus.