The statement that GDP = C + I + G + X - M is an identity, because _______.
a. trade surpluses can be either good or bad
b. trade deficits can be either good or bad
c. it is true according to the definition of GDP
d. each trade is conducted on a voluntary basis
c. it is true according to the definition of GDP
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Which of the following statements about production isoquants is correct?
A) They show all the combinations of two inputs that result in the same level of output. B) They are usually concave to the origin. C) They show all the combinations of two inputs that yield the same cost of production. D) They represent lower levels of output the farther they are from the origin.
Which of the following is an example of money illusion?
A) An individual is willing to work more hours when the nominal wage rises by 10 percent and the overall price level rises by 5 percent. B) An individual is willing to work more hours when the nominal wage rises by 10 percent and the overall price level rises by 20 percent. C) An individual will neither increase nor decrease the number of hours she is willing to work when the nominal wage rises by 10 percent and the overall price level rises by 10 percent. D) none of the above
Which of the following statements best reflects the concept of present value?
A. "The savings bond I bought five years ago is now worth $1,000." B. "My $100 savings bond will be worth $200 in 10 years." C. "You owe me $500, due at the end of the year, but I will reduce your debt to $450 if you pay me now." D. "The $5,000 in my savings account is worth less today than five years ago because of inflation."
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.