Negative economic growth in the long-run can be illustrated in Figure 17.1 by
A. Movement from point D to point C.
B. An outward shift of the production possibilities curve.
C. An inward shift of the production possibilities curve.
D. Movement from point B to point D.
Answer: C
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If the marginal propensity to import is ________, then a $2 trillion increase in disposable income would increase import expenditure by $0.2 trillion
If the marginal propensity to import is ________, then a $2 trillion increase in disposable income would increase import expenditure by $0.6 trillion. A) 0.1; 0.3 B) 0.6; 2.0 C) 0.2; 0.6 D) 1.0; 3.0 E) 0.3; 0.1
Which of the following is included in the M1 money supply?
A) Bonds B) Credit cards C) Gold D) Deposits in checking accounts E) All of the above.
The primary objective of inward-oriented strategies is:
a. to raise government revenue through tariffs and other import taxes. b. to lower the domestic price of imports. c. to replace imported manufactured goods with domestic goods. d. to encourage imports through reduction of tariff and non-tariff barriers. e. to encourage the production of those goods in which the country has an absolute advantage.
Factor prices, returns from alternative activities, technology, number of firms, producer expectations, and natural events are often termed:
A) demand determinants. B) demand quantities. C) supply prices. D) supply shifters.