Suppose that the country of Xenophobia chose to isolate itself from the rest of the world. Its ruler proclaimed that Xenophobia should become self-sufficient, so it would not engage in foreign trade. From an economic perspective, this idea would
a. make sense if Xenophobia had an absolute advantage in all goods.
b. make sense if Xenophobia had no absolute advantages in any good.
c. not make sense as long as Xenophobia had a comparative advantage in some good.
d. not make sense as long as Xenophobia had an absolute advantage in at least half the goods that could be traded.
c
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According to the saving and investment equation, if net foreign investment falls by $35 million
A) national saving in excess of domestic investment will rise by $35 million. B) national savings will rise by $35 million. C) domestic investment will fall by $35 million. D) national saving in excess of domestic investment will decrease by $35 million.
An exchange rate is the number of units of:
a. a nation's money that is equal to one unit of another nation's money. b. a nation's output that is equal to one unit of another nation's output. c. gold backing a nation's money. d. none of these.
Nicky makes $25,000 a year as a sales clerk. He then decides to quit his job to enter a MBA program full-time (assume Nicky doesn't work in the summer or hold any part-time jobs). His tuition, books, living expenses, and fees total $15,000 a year. Given this information, the annual total cost of Nicky's MBA studies is:
a. $10,000. b. $30,000. c. $40,000. d. $15,000. e. $25,000.
Which of the following market transactions are excluded from the computation of U.S. GDP?
a. Purchases of products such as wine, beer, and hard liquor by a household b. New purchases that a resident of one state makes in a different state c. Money spent on pollution cleanup and other restorative projects d. Purchase of raw materials by a firm for further reprocessing