What effect did the decrease in the value of the dollar have on the U.S. trade deficit in the period from 2006 to 2009?
a. It decreased the trade deficit as Americans bought more U.S. capital goods.
b. It decreased the trade deficit as foreigners were attracted to the increased value of U.S. products and Americans bought fewer imports.
c. It increased the trade deficit as U.S. investors bought more domestic financial assets.
d. It increased the trade deficit as Americans bought more imports and foreigners bought fewer U.S. products.
b
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The increase in the capital stock equals the amount of
A) gross investment. B) depreciation. C) net investment. D) private sector spending.
Which is not a fixed cost?
a. monthly rent of $1,00 . with a 12 month lease b. an insurance premium of $50 per year, paid last month c. Tax accountant's salary d. labor costs paid per hour
To an economist, theory can be thought of as
a. abstraction for the sake of argument. b. one person's opinion, which is just as good as another's. c. another term for the description of a situation. d. beliefs which cannot necessarily be verified. e. explanation of mechanisms behind observed phenomena.
In the long run, firms will enter a perfectly competitive market if the existing firms are making:
A. a profit. B. zero profits. C. negative profits. D. Any of these could be true.