A resident of the U.S. owns a factory in China. Earnings from this factory would be considered as ________
A) exports B) investment income C) transfer income D) imports
B
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Refer to Figure 13-13. If the diagram represents a typical firm in the market, what is likely to happen to its average cost of production in the long run?
A) It will probably fall since the firm must be cost efficient to remain competitive. B) It will probably rise since the firm will be producing less than its current amount. C) It will probably rise since its long-run demand is likely to be higher. D) It will probably fall since the firm will be selling less than its current amount.
Whenever the general level of prices rises because of continual increases in aggregate demand, we say that the economy is experiencing
A) supply-side inflation. B) monetary stagflation. C) demand-side inflation. D) aggregate supply shock.
If the benefits to society of students attending college exceed benefits to the students,
a. higher education should be strictly regulated b. higher education should be taxed c. higher education provides a positive externality d. higher education is overproduced at the privately determined equilibrium e. in time, no higher education will be produced
In the base year:
A. nominal and real GDP are equal by definition. B. nominal GDP is always larger than real GDP because prices are held constant. C. real GDP is always larger than nominal GDP because prices are held constant. D. real GDP will only be larger than nominal GDP if prices increased in the base year.