In order to protect key industries, some countries impose taxes on their exports instead of imports, mainly because it is easier to collect taxes from the export industry
a. True
b. False
Indicate whether the statement is true or false
False
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
If Happy Cleaners and Sparkle Cleaners are in a Cournot oligopoly and Happy Cleaners has a higher cost of production than Sparkle Cleaners, in equilibrium, Happy Cleaners will produce ________ than Sparkle Cleaners and charge a price that is ________ Sparkle Cleaners.
A) more; less than B) less; greater than C) less; the same as D) more; the same as
Which of the following is an example of a positive externality? a. Nick spends $500 to landscape his yard and his property increases in value by $1,000
b. Mick spends $500 on a stereo, which he plays so loudly that his neighbors are willing to pay him $1,000 not to play the stereo. c. An increase in the demand for computers causes IBM to hire more workers. d. Complaints of speeding cause police to increase surveillance. e. Lisa puts new concrete on her driveway and now the neighboring kids use it for skateboarding.
Double counting in the resource cost-income approach to GDP statistics is avoided by
a. correct accounting of the values of exports and imports b. choosing only one method to calculate GDP--either the income or the expenditures method c. counting only the value added at each stage of a good's production process d. counting the value of final and intermediate goods and services e. subtracting the total value of intermediate goods and services from the total value of final goods and services