In an open economy, the government deficit is 600 and saving exceeds investment by 500, so in equilibrium the trade deficit (IM ? X) must be
a. 100.
b. 200.
c. 300.
d. 700.
a
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Suppose that a company produces at a point where its MR is $430 and its MC is $105, this implies that
a. the firm earns a total profit of $325 at that output level b. the firm’s total costs are rising faster than its total revenue c. the firm’s total profit is rising, suggesting that the firm should expand production d. each unit of output generates an average profit of $325
Which of the following is a TRUE statement about stock markets?
A) Economists can make above-average profits in the stock market because of their specialized knowledge of economics. B) It is always better to buy growth stocks than the older and more stable blue-chip stocks. C) The stock market on average over time is random and totally unrelated to the performance of the economy. D) It is illegal for a friend of a corporate executive to make large profits in the stock market by using his inside information.
Althea, a brilliant new Ph.D. in economics, has turned down many job offers because she hopes eventually to teach at one of the top 10 universities in her field. The type of unemployment she is experiencing is:
a. frictional. b. structural. c. seasonal. d. cyclical. e. underemployment.
If the demand for a commodity is perfectly elastic, a downward shift in supply will result in lower prices
Indicate whether the statement is true or false