The major difference between a closed economy and an open economy is that a(n)
A. closed economy balances budget, while an open economy does not.
B. open economy is a market economy, while a closed economy relies on planning.
C. open economy interacts with the rest of the world, while a closed economy does not.
D. closed economy keeps political affairs secret, while an open economy does not.
Answer: C
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Real income is the purchasing power of nominal (money) income
a. True b. False Indicate whether the statement is true or false
The group that benefited most from the bailout of General Motors and Chrysler was nonunion workers
Indicate whether the statement is true or false
Snowpeak Ski Resort offers a price for a lift ticket that is barely over its marginal cost, but the high equipment rental fee keeps generating big profits. Which pricing strategy is the management using?
A. Two-part pricing B. Commodity bundling C. Cross-subsidization D. Price discrimination
Figure 17.1 depicts a firm's marginal revenue product curve. The marginal revenue product curve is negatively sloped because ________ decreases as the firm uses more labor.
A. the hourly wage B. the marginal product of labor C. the product price D. None of these