For a simple economy (no government, no foreign sector), the condition for equilibrium can be stated correctly as
A. saving equals actual investment.
B. saving equals inventory accumulation.
C. saving equals planned investment.
D. inventory accumulation equals planned investment.
Answer: C
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Which of the following is true of M1? a. It is equal to M2
b. It consists of all near-monies. c. It consists of certificates of deposit. d. It is the broader definition of money. e. It is only a fraction of M2.
When a nation totally bans trade with another country, it is imposing a(n):
a. tariff. b. embargo. c. quota. d. none of these.
Whenever any firms in a concentrated industry merge, the four firm concentration ratio: a. will rise
b. may rise or stay the same. c. may rise or fall. d. will fall.
Net exports equal
a. exports plus imports. b. exports minus imports. c. imports minus exports. d. GDP minus imports.