In Econland exports equal 15 percent of total output, while imports equal 20 percent of total output. Econland has a:
A. trade surplus.
B. trade deficit.
C. budget surplus.
D. budget deficit.
Answer: B
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An endogenous variable is typically ________
A) taken as given B) strictly explained outside the model C) strictly explained inside the model D) strictly explained by data E) strictly explained by graphical analysis
The intersection of the aggregate demand and aggregate supply curves determines the:
A. per-unit cost of production in the economy. B. equilibrium level of real domestic output and prices. C. shape of the aggregate demand curve. D. shape of the aggregate supply curve.
When a worker has a rare skill or talent, supply in that labor market:
A. depends on the output produced. B. is low. C. depends on the other factors of production. D. is high.
If the quantity of tacos is measured along the horizontal axis and the quantity of movies is measured along the vertical axis, and the price of a taco is $2.00 while the price of a movie is $12, then the slope of the budget line is
A. -1/3. B. -1/6. C. -6. D. -3.5