Which statement is false?
A. If net exports were not included in GDP, that figure would be higher.
B. Between the early 1990s and 2007 our trade deficit increased substantially.
C. During the last ten years, our trade balance in services was negative.
D. After the 1970s, our trade balance has been negative.
C. During the last ten years, our trade balance in services was negative.
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George was assigned to read a chapter in economics tonight, but he has a math exam tomorrow. He chooses to study for the math exam and postpone his economics studies until after the exam. What is the opportunity cost of George's decision?
A) The lower math grade he would have received had he not studied for the math exam B) The economics knowledge he sacrificed by not reading the assigned chapter C) Both A and B above D) Without information regarding the price of the textbook and the value to George of the math exam, George's opportunity cost cannot be determined.
One major advantage to a fixed exchange rate system is
A) that exchange rate volatility is eliminated. B) that hedging strategies can be implemented. C) that fixed exchange rate nations seldom have credit risk problems. D) that systemic risk is eliminated.
Which of the following reduced the demand stimulus effects of monetary policy during the years following the 2008-2009 recession?
a. Failure of the Fed to provide sufficient reserves to the banking system for the extension of new loans. b. A substantial reduction in the velocity of money resulting from the historically low interest rates. c. The Fed's high interest rate policy that reduced private investment. d. Inability of the Fed to gain approval from Congress to purchase assets other than bonds issued by the federal government.
A firm is experiencing ________ on the downward-sloping portion of a firm's long run average cost curve.
A. decreasing returns to scale B. constant returns to scale C. diminishing marginal returns D. increasing returns to scale