Wobet is a small country that produces only steak and potatoes. Steaks have a price of $10 each and potatoes have a price of $1 each. Suppose that Wobet produces 10 steaks and 20 potatoes in 2010. Using ________, Wobet has GDP equal to ________
A) market value; 30 units
B) a market basket; 30 units
C) market value; $120
D) real value; $120
E) a price index; $120
C
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Which of the following would provide a reasonable benchmark for how much you should pay monthly into a "real world" savings account?
A) Sum your unexpected expenditures over the last 12 months, divide this figure by 12, and allocate this amount into the savings account regularly. B) Sum your unexpected expenditures during the last month, and if this total is greater than the additional amount you can borrow on your credit cards, you do not need a "real world" savings account. C) Sum your unexpected expenditures last month and allocate this amount into the savings account regularly. D) Sum your unexpected expenditures over the last 12 months, divide this figure by 12, and if this total is less than the additional amount you can borrow on your credit cards, you do not need a "real world" savings account.
If domestic income falls, what must happen to keep the trade balance the same?
a. The real exchange rate must fall. b. Foreign income must rise. c. The domestic price level must fall. d. Domestic income must fall.
When is the unemployment rate zero?
A. Right after a recession ends B. Never C. When GDP growth is at its peak D. Right before a recession starts
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles. B. an increase in economic growth. C. an increase in unemployment. D. a reduction in unemployment.