Absorption refers to
A) the total amount of imports purchased by a country.
B) the net amount of imports purchased by a country.
C) total spending by domestic residents, businesses, and governments.
D) GDP less desired consumption, desired investment, and government purchases.
C
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Because of the shortcomings of concentration ratios, some economists prefer another measure of competition called
A) the Herfindahl-Hirschman Index. B) the Economic Profit Index. C) the Competition Index. D) the Marginal Revenue-Marginal Cost Index.
Every society must deal with the problem of scarcity because:
a. people do not have enough money to buy everything they need. b. government levies heavy taxes on households and firms. c. human beings become satiated as consumption increases. d. human wants are nearly unlimited relative to the availability of resources. e. productive resources, technology, and labor are unlimited.
Keynes rejected the view that lower wages would direct a recessionary economy back to full employment because
What will be an ideal response?
Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States is represented by the following set of equations:QS = -60 + 3PQD = 390 - 2PIf the United States engages in free trade and the international price of skateboards is $75, it would import ________ skateboards from the rest of the world.
A. 95 B. 85 C. 65 D. 75