A rising exchange rate raises U.S. living standards by:
A. discouraging imports.
B. encouraging exports.
C. helping to hold down inflation.
D. causing a balance of trade surplus.
Answer: C
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Capital per person k is higher in Japan than in the United States. As a result ________
A) per capita income is higher in Japan B) total factor productivity is higher in Japan C) the marginal product of capital is higher in Japan D) all of the above E) none of the above
Which category includes the largest number of firms?
a. sole proprietorship b. partnership c. corporation d. S-corporation e. limited partnerships
Individuals are more likely to engage in productive activities when institutions and policies
a. create a fair and unbiased judicial system. b. result in high and variable rates of inflation. c. transfer a large share of income through the political process. d. are used to centrally plan the economy.
The two sector flow model represents a good way to see how GDP is counted. What are the two methods or approaches to counting GDP?
What will be an ideal response?