Explain why international trade is less important to the United States than it is to many other countries
What will be an ideal response?
In the United States, international trade (imports and exports) makes up a lower percentage of GDP than in many other countries. As a percentage of GDP, U.S. imports and exports each make up less than 20 percent of U.S. GDP, whereas in some countries, such as Belgium and the Netherlands, imports and exports make up over half of GDP, and in larger European nations such as France, Italy, Germany, and the United Kingdom, imports and exports make up between 25 and 50 percent of GDP.
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Smith's Shoes is a failed business enterprise, with debts of $10 million. Steve Smith has an ownership stake in Smith's shoes
Which of the following statements INCORRECTLY characterizes Steve Smith's legal liability for the debts of Smith's Shoes, depending on the firm's type of business organization? A) If Smith's Shoes is a proprietorship, then Steve Smith is fully liable for the entire $10 million in debt of the failed shoe store. B) If Steve Smith is a partner in Smith's Shoes, then his legal liability for the debts of Smith Shoes is $10 million divided by the number of partners. C) If Smith's Shoes is a corporation in which Steve Smith is a stockholder, then Steve Smith does not need to use any of his wealth to pay the debt because the company has limited liability. D) None of the above statements is incorrect.
A government action that can help correct positive externalities is
A) a tax on producers of the good that provides external benefits. B) a subsidy to consumers of the good that provides external benefits. C) an effluent fee charged to producers of the good that provides external benefits. D) regulations aimed at reduced production by sellers of the good that provides external benefits.
The term "underemployed" is used to describe an individual who: a. prefers full-time employment but works only part time
b. has given up looking for a job because he is discouraged about his prospects. c. is jobless because of the seasonal nature of his job. d. is jobless due to a recession in the economy.
The marginal physical product of the third unit of labor in Figure 21.1 is
A. 12.0 units per day. B. 13.3 units per day. C. 40.0 units per day. D. 4.0 units per day.