China exports toys to the United States; in a closed economy China must have a domestic price that is ________ the world price of toys.
A. close to
B. equal to
C. less than
D. greater than
Answer: C
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When the U.S. government runs a budget deficit, its primary way of covering that deficit is
A) printing money. B) defaulting on its payments. C) selling stock. D) issuing bonds.
If the government wishes to increase GDP by $1,200b, and the MPC is 0.75, it should:
A. increase its spending by $300b. B. decrease its spending by $300b. C. increase its spending by $900b. D. decrease its spending by $900b.
In the long run, a monopolist can continue to earn economic profits.
Answer the following statement true (T) or false (F)
A short-run decrease in the price of a firm's output will typically
A. lead to a movement along the firm's demand for labor curve. B. not impact the hiring of labor. C. make the demand for labor more inelastic. D. lead to lower employment of labor in the competitive firm.