The U.S. trade deficits of the 1980s and 1990s may represent a problem because they will require
a. higher consumption in the future in order to increase imports.
b. lower consumption in the future in order to repay interest and principal to foreigners.
c. lower consumption in the future in order to finance increased investment.
d. higher budget deficits in the future in order to increase the trade surplus.
b
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Which of the following would reduce a country's Economic Freedom of the World rating?
What will be an ideal response?
Which point or output-combination in the graph below could the nation produce only if it experienced economic growth?
A. Combination F
B. Combination G
C. Combination C
D. Combination E
According to Okun's law, if output grew 1% and full-employment output rose 3%, what would be the change in the unemployment rate?
A. 2 percentage points B. -2 percentage points C. 1 percentage point D. -1 percentage point
Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. Using the midpoint formula, the price elasticity of demand for pumpkins from the equilibrium point before the imposition of the tax to the equilibrium point after the imposition of the tax is
A. -0.02. B. -0.47. C. -2.11 D. -4.43