A Korean steel company produces steel in the United States, with some of its steel being exported to other nations and some of it being sold within the United States. If the prices of this steel increase, then
a. the GDP deflator and the CPI will both increase.
b. the GDP deflator will increase and the CPI will be unchanged.
c. the GDP deflator will be unchanged and the CPI will increase.
d. the GDP deflator and the CPI will both be unchanged.
a
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Using the compensating differential approach, the value of a life is calculated as
A) the compensating differential multiplied by the increased chance of death. B) the sum of the compensating differential and the increased chance of death. C) the compensating differential divided by the increased chance of death. D) the difference between the compensating differential and the increased chance of death.
According to the law of diminishing returns
a. Production increases at a decreasing rate b. Production increases at a increasing rate c. Production decreases at a decreasing rate d. Production decreases at an increasing rate
One intention of deposit insurance is to reduce the danger of
a. excess lending. b. excess profits. c. risky lending. d. bank runs. e. All of the above are correct.
A basic assumption used in most economic theories is that:
A. as price decreases, quantity demanded will decrease. B. whatever goes up must come down. C. what is true for a part of the whole must also be true for the whole. D. all other things remain the same.