What is the value of the intra-industry trade index for an industry in which exports are $100 million and imports are $100 million?
a. 100/200 = 0.50
b. (100 + 100)/100 = 2.00
c. 100/[1/2 × (100 + 100)] = 1.00
d. (100 - 100)/100 = 0.00
Ans: c. 100/[1/2 × (100 + 100)] = 1.00
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The government played a central role in directing the post-World War II economy, causing all of the following to occur except
(a) The reduction of entitlements, such as Social Security and unemployment benefits. (b) Massive spending by the federal government, justified by the Cold War. (c) Enormously expanded government infrastructure spending on things like highways, airports, education and research and development. (d) There is no "except"; all of the above occurred.
The own-price elasticity of demand is defined as:
a. the ratio of a change in quantity demanded and the change in price. b. the ratio of the percentage change in quantity demanded to the percentage change in price. c. the ratio of the percentage change in quantity demanded to the percentage change in input prices. d. the ratio of a change in output and the change in input usage.
When finding GDP algebraically, what is the final, unique equation that can be used?
a. GDP = C + Ip + G + NX b. GDP = AE + NX + T c. GDP = C + I + G + NX d. GDP = Y + T + G e. GDP = C + I + NX
Why would one expect the AD curve to be vertical?
A. People do not make choices based on relative prices, but instead based on absolute prices. B. If the price level rises, changes in choices by suppliers are offset by changes in demanders. C. If the price level rises, relative prices haven't changed so people would not change their choices. D. Substitution is not one of the reasons why the AD curve has its slope.