How are net exports, net factor payments from abroad, and the current account balance related?
What will be an ideal response?
NX + NFP = CA.
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All of the following are key features of the new the federal government's national health care program EXCEPT
A) people must either purchase health insurance or pay a fine to the federal government. B) a young person in good health can opt not to purchase health insurance without penalty. C) firms with at least 50 employees must either provide health insurance or pay fines when uninsured employees receive tax subsidies to purchase insurance. D) government-directed exchanges will assist in matching individuals and small businesses with health insurance policies that satisfy government requirements.
Which of the following is a barrier to economic growth in low-income countries?
a. A shortage of labor b. A declining population c. Lack of investment in research and development d. Lack of natural resources e. An increasing amount of savings
Suppose the value of income elasticity of demand for a private college education is equal to 1.5. This means that:
A. every $1 increase in income provides an incentive for a $1.50 increase in expenditures on private college education. B. a 10 percent decrease in private college tuition will have a large enough income effect to increase spending on private college education by 15 percent. C. a 10 percent increase in income causes a 15 percent increase in the quantity of private college education purchased. D. a 15 percent increase in income causes a 10 percent increase in the quantity of private college education purchased.
Total producer surplus in a market is measured as the
A. area bounded above the market clearing price and beneath the market demand curve. B. vertical distance from the horizontal (quantity) axis to the market clearing price. C. area bounded below the market clearing price and above the market supply curve. D. horizontal distance from the vertical (price) axis to the equilibrium quantity.