If a budget is cyclically balanced, the government should run a surplus when the economy experiences a contractionary gap
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $8.00; AVC = $5.00; MC = $8.00; MR = $9.00. The firm should
A) decrease output. B) increase output. C) increase price. D) continue to produce its current output.
A macroeconomic variable is pro cyclical if
A. it grows faster than GDP B. its deviations from trend generally change before the deviation from trend in GDP do C. its deviations from trend generally change more than the deviations from trend GDP D. its deviations from trend are more often of the same sign as the deviations from trend GDP
The HeckscherOhlin model of international trade uses _____ and ______ to explain trade patterns.
a. comparative; absolute advantage b. factor abundance; factor intensity c. factor availability; factor usability d. tariffs; quotas
Economics deals with choices
A. that involve what people only need to survive. B. that involve the wants of individuals. C. that people make without self-motivated interest. D. that people normally do not make.