Suppose that a country with a closed economy opens itself to international trade and becomes a net exporter. In that case, domestic suppliers will supply ________ of that good after it opens itself to international trade.
A. same amount
B. more
C. less
D. none
Answer: B
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Suppose Puerto Rico and Hawaii currently have the same production possibilities so that the above figure is the PPF for hotels and consumption goods in the two areas
Hotels are a capital good that,once built, will help produce still more consumption goods. If Puerto Rico produces more hotels than Hawaii, A) Hawaii's PPF will shift outward further than Puerto Rico's PPF. B) Hawaii's PPF will shift inward. C) Puerto Rico's PPF will not shift. D) Puerto Rico's PPF will shift outward further than Hawaii's PPF. E) Puerto Rico's and Hawaii's PPF will shift outward by the same amount.
Which component of employee compensation has grown most rapidly in recent decades?
A) net interest income B) benefits C) transfer payments D) wages and salaries E) net factor income
Suppose the government expenditure increases by $200 and the simple spending multiplier equals 5 . The final increase in output will be: a. $6000
b. $500. c. $200. d. more than $200. e. less than $200.
If the recessionary GDP gap is $500, then the proper fiscal stimulus when faced with an upward-sloping AS curve is to
A. Shift the AS curve rightward by less than $500. B. Shift the AD curve rightward by $500. C. Shift the AD curve leftward by $500. D. Shift the AD curve rightward by more than $500.