If an economy is closed and if it has no government, then
a. national saving = 0.
b. national saving = private saving.
c. public saving = investment.
d. gross domestic product = consumption.
b
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Use the following graph, where Sd and Dd are the domestic supply and demand curves for a product, to answer the next question.
Suppose the world price of the product is $6. If this market is closed to international trade the total revenue that would go to domestic producers would be ________, and if the market is open to international trade the total revenue for domestic producers would be______.
A. $500; $240 B. $600; $240 C. $600; $120 D. $240; $120
Autonomous expenditure is the component of
A) induced expenditure that changes when in real GDP changes. B) aggregate planned expenditure that changes only when government expenditure on goods and services change. C) aggregate expenditure that does not change when real GDP changes. D) aggregate expenditure that does not change when the interest rate changes. E) aggregate expenditure that changes when real GDP changes.
Demand for labor is
a. derived demand. b. highly elastic. c. dependant on its supply. d. directly proportional to capital employed.
During the Great Recession, securitization:
a. Was a major problem because it prohibited mortgage originators from reducing their underwriting mistakes by shifting them investors. b.Was one of the only sources of relief for investors who were suffering heavy losses on their mortgage investments. c. Was a major cause of the moral hazard problem. d. None of the above.