Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Absorption is equal to
A. $435 billion.
B. $420 billion.
C. $405 billion.
D. $440 billion.
Answer: C
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Which of the following explains the slower economic growth in the South compared to other regions of the country?
A. Much of the South's capital, public and private, was destroyed in the Civil War. B. The transcontinental railroads that were completed in the 1860s, 1870s, and 1880s all bypassed the South. C. The South remained an agricultural region after the Civil War instead of immediately becoming a higher productivity manufacturing region. D. All of the choices are true.
A given supply curve has a zero intercept. At the current equilibrium price the price elasticity of supply equals
A) 1. B) 0. C) 2. D) Not enough information is provided.
The World Bank defines extreme poverty as income of less than $1.90 per day per person.
Answer the following statement true (T) or false (F)
According to the marginal-cost-marginal-benefit rule:
A. only government projects (as opposed to private projects) should be assessed by comparing marginal costs and marginal benefits. B. the optimal project size is the one for which MB = MC. C. the optimal project size is the one for which MB exceeds MC by the greatest amount. D. project managers should attempt to minimize both MB and MC.