A decrease in U.S. tariffs on European goods, ceteris paribus, would ______.
a. make European goods more affordable to U.S. residents
b. lead to a lower exchange rate for the euro
c. make U.S. goods more affordable to European residents
d. increase the income of U.S. residents
a. make European goods more affordable to U.S. residents
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If an economy is operating on its production possibility frontier, which of the following statements is true?
A. Products are produced using inefficient production technology. B. The capacity utilization rate is less than full production. C. The economy's labor force is fully employed. D. A fall in the price of an input will enable the economy to produce outside the production possibility frontier.
Here is what we know about a household: wages $25,000, unemployment insurance benefits $3,000, dividend income $4,000, income tax $5,000. What is the contribution to GDP of this household following the expenditure approach?
A) $24,000 B) $25,000 C) $28,000 D) $29,000
Type I error is:
a. the statistical notion of accepting a false hypothesis. b. when a harmful drug is allowed into the market. c. difficult to detect and virtually ignored by the FDA. d. when a beneficial drug is blocked from entering a market.
If GDP is $5,000 billion and the velocity of the M2 money supply is 5, what is the amount of the public's holding in the form of M2?
A. $500 B. $2,000 C. $1,500 D. $1,000