Trade within a country typically involves ________, while trade between countries normally involves ________.
A. flexible exchange rates; fixed exchange rates
B. nominal currencies; real currencies
C. a single currency; different currencies
D. real currencies; nominal currencies
Answer: C
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Given the equations for C, I, G, and NX below, what is the marginal propensity to save?
C = 1,000 + 0.8Y I = 1,500 G =1,250 NX = 100 A) 0.2 B) 0.8 C) 1.8 D) 10
Which of the following is true about the market supply for resources?
a. The market supply curve of a resource reflects the maximum willingness-to-pay for all firms purchasing resources in the resource market. b. The market supply curve of a resource is derived from the value of the final goods and services produced with the resource. c. The market supply curve of a resource slopes upward because higher resource prices draw resources from lower-valued uses, and because suppliers are able to supply more of the resource at a higher price. d. The market supply curve of a resource slopes downward because suppliers are able to supply less of the resource at a higher price.
Susie grows corn in her backyard garden to feed her family. The corn she grows is not counted in GDP because
a. it was not produced for the marketplace b. it is an intermediate good that Susie will process further before feeding her family c. goods produced using land are not included in GDP d. the corn has low value e. it reduces the amount of corn she will buy at the store
When the rate of cyclical unemployment is zero, the
a. natural rate of unemployment must also be zero b. rate of frictional unemployment must be negative c. economy must have entered a recessionary stage d. Keynesian aggregate supply curve must be horizontal e. economy is considered to be at full employment