Which of the following statements is false?
A) When the value of a country's imports is greater than the value of its exports, the country's net exports will be a positive value.
B) A country is running a trade deficit when the value of its imports is greater than the value of its exports.
C) A country is running a trade surplus when the value of its exports is greater than the value of its imports.
D) Net exports are sometimes referred to as the balance of trade.
A
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The marginal propensity to consume out of income
A) is larger than one. B) is equal to one. C) is smaller than one. D) varies around one.
Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 40 units of clothing but no food. Suppose each has the utility function U = F1/2C1/2
If the price of clothing is always $1, and the food price is currently $3, then we can conclude A) the market is at a competitive equilibrium. B) the price of food will drop towards a competitive equilibrium. C) the price of food will increase towards a competitive equilibrium. D) None of the above.
If nominal Gross Domestic Product (GDP) in 2010 was $500 billion with a price index of 100, what would be the real Gross Domestic Product (GDP) in 2020 if the 2018 nominal Gross Domestic Product (GDP) was $900 billion and the 2020 price index was 140?
A. $800 billion B. $900 billion C. $643 billion D. $540 billion
One way investment banks differ from commercial banks is that investment banks
A) lend exclusively to households. B) do not take in deposits. C) only buy and sell mortgages. D) trade only in foreign exchange markets.