In a closed economy firms sell goods and services to:
A) households and foreigners.
B) households and the government.
C) just the government.
D) none of the above.
B
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To arrive at a logical determination of a firm’s optimum output, economists assume that the firm seeks to
a. maximize output. b. minimize cost. c. maximize profit or minimize loss. d. maximize price.
A U.S. mutual fund uses $1 million to buy yen from a Japanese bank. It then uses these yen to buy stocks in a Japanese electronics firm. The Japanese electronic firm then exchanges the $1 million dollars of yen for dollars from a U.S. bank. It uses
these dollars to buy equipment manufactured by a company located in the U.S. As a result of these exchanges, by how much, if at all, and in which direction does: A. U.S. net exports change? B. U.S. net capital outflow change?
The demand for an input is called a derived demand because
A. employers of inputs, particularly labor, derive income from using inputs. B. employers derive satisfaction from giving employment to an input. C. the demand for output is derived from the demand for the inputs used to produce it. D. it arises from the demand for the output that the input is used to produce.
The Group of Seven is an informal international institution that is comprised primarily of the:
A. major developing countries. B. leading industrial democracies. C. leading petroleum exporting countries. D. leading socialist countries.