A small open economy would typically enjoy a higher trade balance if, in the domestic economy, ________
A) autonomous consumption expenditures decrease
B) taxes go up
C) government spending decreases
D) all of the above
E) none of the above
D
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Which of the following helps economists avoid double counting in computing of GDP?
a. Including goods and services produced only within a given area. b. Only include transfer payments made by the government and not individuals. c. Only include capital purchases by corporations and not by family-owned firms. d. Avoiding the use of intermediate goods in calculating GDP.
The supply of loanable funds comes from all the following, but:
A. borrowers. B. individuals. C. businesses. D. government.
Suppose you have a firm in which the owner pays $10,000 per month on rent of the plant and equipment and will pay that regardless of much output they produce. If they get going they need $10 in materials and $20 in labor for each unit they produce,
A. their fixed costs are $10,000 and $10 per unit. B. their fixed costs are $10,000 and variable costs are $30 per unit. C. their fixed costs are $10,000 and variable costs are $20 per unit. D. their variable costs are $10,000 plus $10 per unit.
The data in the table above are the U.S. balance of payments. What is the current account balance?
A) $0 B) $150 billion C) -$100 billion D) -$150 billion