Higher real GDP growth usually causes
A) a drop in net exports.
B) a rise in net exports.
C) a drop in the trade deficit.
D) A and C.
A
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Refer to Table 2-8. Which of the following statements is true?
A) Betty has an absolute advantage in making both products. B) Betty has an absolute advantage in making statues and Wilma in making benches. C) Betty has an absolute advantage in making benches and Wilma in making statues. D) Wilma has an absolute advantage in making both products.
The adaption of new technology in low-income countries can be difficult if: a. they lack appropriate supportive economic institutions. b. their natural rates of unemployment are more than 5 percent
c. their GDP gaps is large. d. they experience hyperinflation for a considerable period of time.
If marginal cost of growing wheat, MC, just reaches $4 per bushel and if the expected price of wheat Pis $4, a farmer
A. should produce at that exact level at which MC= P and if AVC< MC. B. should check her/his average variable cost to see if P covers AVC. C. should stop producing if AVC> 4. D. All of the above.
Frictional unemployment is unemployment reflecting a mismatch of skills and jobs
Indicate whether the statement is true or false