Which of the following describes the relationship between net exports and imports?
a. Net exports = imports + exports
b. Net exports = exports - imports
c. Net exports = imports - exports
d. Imports = net exports - exports
e. Imports are not related to net exports
B
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One of the flaws of GDP is that it
A) includes measures of changes of quality of life associated with producing output. B) includes measures of the underground economy. C) includes only transactions that take place in formal businesses. D) ignores transactions that do not take place in organized markets.
What is a long-run average cost curve?
What will be an ideal response?
Recently, the State of Tennessee discovered chemical compounds in their drinking water which may cause cancer. Since Tennessee's drinking water comes from the Pigeon River in North Carolina, the source of these chemicals is the waste discharges of industrial paper plants in North Carolina. This is an example of a(n):
a. external cost imposed on the citizens of Tennessee by the industrial plants of North Carolina. b. market failure where the market price of the output of these industrial plants does not fully reflect the social cost of producing these goods. c. externality where the marginal social costs of producing these industrial goods differ from the marginal private costs. d. all of these.
The paper money or currency in the United States essentially represents a(n)
A. liability of the U.S. Treasury. B. liability of the Federal Reserve System. C. liability of commercial banks and savings institutions. D. asset of the Federal government.