Which of the following does NOT occur when the economy is operating at the equilibrium level of GDP?
A) Total planned expenditures equal real GDP. B) Planned investment equals actual investment.
C) Inventory investment equals zero. D) Real GDP tends to rise over time.
D
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Suppose the price level this year is 150 and the price level last year was 125. The inflation rate between last year and this year was
A) 20 percent. B) 2 percent. C) 16.6 percent. D) 1.6 percent.
If a firm is wondering whether or not it should "buy or make,"
A) it is exploring its horizontal boundaries. B) it is exploring its vertical boundaries. C) it is exploring the boundaries of its network. D) it is considering a "winner-take-all" event.
The North American Free Trade Agreement affects trade between
a. the United States, Cuba, and Brazil b. the United States, Canada, and Mexico c. the United States, Puerto Rico, and Cuba d. Brazil, Bolivia, Peru, and Columbia e. China and the United States
The difference between the economic and political functions of government is that
A. the economic function is concerned with correcting for market failures while the political function is not. B. the economic function is concerned with the reallocation of income while the political function is not. C. the economic function is concerned with the Federal Taxation system while the political function is not. D. the economic function encourages merit goods while the political function discourages demerit goods.