In the open economy of Sildavia, government spending during 2005 was $30 billion, consumption was $70 billion, taxes were $20 billion, and GDP was $100 billion. If investment spending in Sildavia during 2005 was $10 billion, we can conclude that Sildavia registered:
A. a net capital inflow of $10 billion.
B. capital inflows of $10 billion and capital outflows of $20 billion.
C. a trade surplus of $20 billion and a financial deficit of $20 billion.
D. a net capital outflow of $10 billion.
A) a net capital inflow of $10 billion
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A decrease in quantity demanded because of an increase in price is represented by a
A) rightward shift of the demand curve. B) leftward shift of the demand curve. C) movement up and to the left along the demand curve. D) movement down and to the right along the demand curve.
The total amount that the U.S. government spends to support a covered type of health care service under the Medicare system equals
A) the per-unit subsidy provided to producers of that service times the quantity of the service demanded by consumers at a below-equilibrium out-of-pocket price of the service. B) the per-unit subsidy provided to producers of that service times the equilibrium quantity of the service demanded at the market clearing price that would arise in the absence of Medicare. C) the below-equilibrium, out-of-pocket price that consumers pay for the service times the quantity of the service provided by producers at that out-of-pocket price. D) the below-equilibrium, out-of-pocket price that consumers pay for the service times the quantity of the service demanded by consumers at that out-of-pocket price.
The discovery of a new hybrid wheat would increase the supply of wheat. As a result, wheat farmers would realize an increase in total revenue if the
a. supply of wheat is elastic. b. supply of wheat is inelastic. c. demand for wheat is inelastic. d. demand for wheat is elastic.
Appreciation of the real exchange rate:
A. makes U.S. exports less expensive to foreigners. B. makes U.S. exports more expensive to foreigners. C. benefits all U.S. producers. D. means a basket of U.S. goods would exchange for fewer foreign goods.