Suppose that the U.S. trade balance is positive. Hence, when the net export function is added to C+I+G, the slope of the U.S. aggregate expenditures function will become steeper
a. True
b. False
Indicate whether the statement is true or false
True
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The social surplus in a market is $50. If another economic agent enters the market such that the marginal cost he incurs is $10 and the marginal benefit he receives from the trade is $5, then which of the following statements is true?
A) The social surplus will remain the same. B) The social surplus will increase by $5. C) The social surplus will decrease by $5. D) The social surplus will increase by $10.
If real Gross Domestic Product (GDP) is $6 trillion, then unplanned business inventories will
A) rise. B) be zero. C) fall. D) be equal to planned inventories.
For a firm to reduce competitive intensity, it should
a. Enact barrier to entry b. Lobby to the government c. Acquire patents d. All the above
An imposition of tax by the government for funding welfare programs raises the cost of labor to firms as:
a. the demand for labor increases. b. the demand for labor decreases. c. the supply of labor decreases. d. the supply of labor increases. e. the opportunity cost of leisure increases.