If national saving in a closed economy is greater than zero, which of the following must be true?
a. Either public saving or private saving must be greater than zero.
b. Investment is positive.
c.
d. All of the above are correct.
d
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The circular flow model demonstrates
A) the role of the government in overseeing the market system. B) the roles played by households and firms in the market system. C) how demand and supply for goods and services are brought into equilibrium. D) how shortages and surpluses are eliminated in a market.
Farming in poor countries is considered to be:
A. capital intensive. B. labor intensive. C. production intensive. D. cost intensive.
If there are diminishing marginal returns to labor,
a. output diminishes as additional workers are added b. the management team grows as more workers are hired c. the rise in output becomes smaller and smaller with each successive worker hired d. the management team shrinks as successive workers are added e. macroeconomic business cycles are generated by microeconomic production functions
If the cost of a typical basket of goods in the U.S. is $100 and in China it is 500 yuan, and the nominal exchange rate is 10 yuan per dollar, what is the real exchange rate?
A. 1. B. 2. C. 3. D. 4.