Suppose exports are greater than imports. Given this information, we know with certainty that
A) a trade surplus exists.
B) GNP > GDP.
C) GNP < GDP.
D) the change in business inventories is positive.
A
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Which of the following is not an idea advocated by Adam Smith?
a. Businesspersons conspiring to fix prices are a threat to the price system. b. Pursuit of private self interest with an invisible hand is the best way to promote the public interest. c. Government should control the economy. d. The government should provide for national defense and little else.
Following an expansionary monetary policy, we would expect lower interest rates, dollar
a. depreciation, and an increase in the current account deficit. b. depreciation, and a decrease in the current account deficit. c. appreciation, and an increase in the current account deficit. d. appreciation, and a decrease in the current account deficit.
During the Great Recession, the prime rate quoted by most banks has fallen to ______%.
A. 5.5 B. 4.25 C. 3.25 D. 1.25
Marginal revenue product is
A) marginal physical product times marginal factor cost. B) marginal physical product times marginal revenue. C) average physical product times marginal revenue. D) marginal physical product times the wage rate.