Lydia, a citizen of Italy, produces scarves and purses that she sells to department stores in the United States. Other things the same, these sales
a. increase U.S. net exports and have no effect on Italian net exports.
b. decrease U.S. net exports and have no effect on Italian net exports.
c. increase U.S. net exports and decrease Italian net exports.
d. decrease U.S. net exports and increase Italian net exports.
d
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One of the problems with the definition of economic growth is that
A) it overstates economic growth because it does not account for leisure time. B) it does not account for the distribution of income. C) it overstates economic growth because it does not account for the reduction in work time. D) it understates economic growth because it does not account for the reduction in work time.
Assuming prices and wages are fully flexible, the aggregate supply curve will be:
A. upward sloping, but not vertical. B. vertical. C. horizontal. D. downward sloping.
Which of the following would likely be studied in a macroeconomics course?
A) the unemployment rate B) total output in an economy C) the inflation rate D) all of the above
Economic models relate to
A) people's choices. B) how people think about something. C) choice. D) the reasons people give for donating to charity.