Which of the following is the best indicator of the performance of the national economy?
a. The budget deficit of the federal government
b. The stock of capital goods (machinery) in the nation
c. The nation's stock of money
d. The balance of trade with other nations
e. The value of the final goods and services produced in the nation
e
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Why might most people, as in the United States, save less than is good for themselves and for the economy as a whole? How might policymakers encourage more saving?
What will be an ideal response?
The shape of a firm's long-run average cost curve is determined by
a. the degree to which each input encounters diminishing marginal productivity. b. the underlying nature of the firm's production function when all inputs are able to be varied. c. how much the firm decides to produce. d. the way in which the firm's expansion path reacts to changes in the rental rate on capital.
The primary difference between commodity money and fiat money is that
a. commodity money is a medium of exchange but fiat money is not. b. fiat money is a medium of exchange but commodity money is not. c. commodity money has intrinsic value but fiat money does not. d. fiat money has intrinsic value but commodity money does not.
Any change in the volume of export or import by a small country will have no effect on its terms of trade.
Answer the following statement true (T) or false (F)