A permanent reduction in net exports leads to
A) a less than proportional decrease in real Gross Domestic Product (GDP).
B) a more than proportional decrease in real Gross Domestic Product (GDP).
C) a reduction in taxes, autonomous government spending, and a fall in real Gross Domestic Product (GDP).
D) a proportional increase in real Gross Domestic Product (GDP).
B
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Holding other things constant, if the US dollar depreciates, it makes the US exports
a. Less attractive to foreigners b. More attractive to foreigners c. Neither more nor less attractive to foreigners d. None of the above
Have you used ketchup? Have you bought ketchup in a supermarket? Consider the characteristics of market structures and decide to which the ketchup industry belongs
a. oligopoly because it represents competition among the few b. monopolistic competition because the demand curves for each brand is horizontal c. perfect competition because the good is identical (ketchup is ketchup) d. monopoly because the firm demand curve is the industry demand curve e. monopoly because there are no good substitutes
Suppose one Big Mac gives you a marginal utility of 500 and a second Big Mac gives you a marginal utility of 200. The total utility of buying (and eating) two Big Macs is:
A. 200. B. 700. C. 300. D. 500.
In modern economies:
A. all prices are very flexible. B. some prices are very flexible while others are not. C. no prices are very flexible. D. prices become less flexible as they increase.