Which of the following is NOT true about this national income equation:
A) For the current account, CA, to improve, we may have to invest less than otherwise would be the case.
B) For the current account, CA, to improve, we may have to save more to maintain the same amount of investment that includes foreign saving.
C) For the current account, CA, to improve, the government may have to run budget surplus.
D) A reduction in the trade deficit with one country will simply show up as an increase in a trade deficit with another country.
E) None of the above.
E
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________ the quantity of money in the United States
A) The President of the United States regulates B) Commercial banks regulate C) The Federal Reserve System regulates D) The Department of Treasury regulates E) The State Department regulates
Which of the following is the rationale behind the infant industry argument for import restrictions?
a. Import restrictions allow new industries, which have cost disadvantages, to compete with bigger firms from abroad. b. Import restrictions prevent foreign firms from selling low-quality raw materials to new domestic industries. c. Import restrictions help protect industries whose existence, owners claim, is vital to the security of the nation. d. Import restrictions prevent foreign firms to engage in unfair practices such as dumping, or selling their products below the cost of production.
A firm is currently producing 1140 units of output according to the production function q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. In the short run, capital is fixed at 5 units. In the long run, the firm's costs are
A) lower because the firm substitutes towards more labor and away from capital. B) lower because the firm substitutes towards more capital and away from labor. C) higher because the firm substitutes towards more labor and away from capital. D) higher because the firm substitutes towards more capital and away from labor.
Refer to the information provided in Table 21.6 below to answer the question(s) that follow. Table 21.6
Refer to Table 21.6. Personal consumption expenditures in billions of dollars are
A. 1,000. B. 1,100. C. 1,300. D. 1,700.