Planned investment is $20 billion and saving is $15 billion when GDP in the economy is $180 billion. The economy is:
A. At the equilibrium level of GDP
B. In disequilibrium and its GDP will increase
C. In disequilibrium and its GDP will decrease
D. Having a GDP level that is greater than its aggregate expenditures
B. In disequilibrium and its GDP will increase
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If the cross-price elasticity of demand for two goods is 1.25, then
a. the two goods are luxuries. b. the two goods are substitutes. c. one of the goods is normal and the other good is inferior. d. the demand for one of the goods conforms to the law of demand, but the demand for the other good violates the law of demand.
Which of the following BEST describes the concept of serendipity in exporting?
A) modifying products to meet cultural preferences B) initiating global sales through e-commerce methods C) relying too much on exports when domestic sales suddenly increase D) opportunistically responding to unsolicited orders from foreign customers
Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of cowboy hats is $35, The Waco Kid will produce
A) 1 hat. B) 2 hats. C) 3 hats. D) 4 hats.
Gradual emancipation laws adopted by some Northern states:
a. used tax revenues to compensate slave owners for the financial loss associated with freeing slaves. b. provided for all newborn children of slaves to be freed at birth. c. provided for the freedom of female slaves, but not male slaves. d. recognized that after age 10 the cost of a slave to the owner was less than the benefit of a slave to the owner.