If foreign citizens earn less income in the U.S. than U.S. citizens earn in foreign countries,
a. U.S. net factor payments from abroad are positive, and its GDP is larger than its GNP.
b. U.S. net factor payments from abroad are positive, and its GNP is larger than its GDP.
c. U.S. net factor payments from abroad are negative, and its GDP is larger than its GNP.
d. U.S. net factor payments from abroad are negative, and its GNP is larger than its GDP.
b
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
The Coase theorem relies on internalizing externalities through ________
A) social enforcement mechanisms B) the provision of corrective subsidies C) the imposition of corrective taxes D) negotiations between the parties involved
In perfect competition, at all levels of output the market price is the same as the firm's ________
A) marginal revenue B) normal profit C) average variable cost D) fixed cost
Zach Greinke's marginal product as a baseball player would be about the same as a Los Angeles Dodger and a Kansas City Royal. Why were the Dodgers willing to pay Greinke a higher salary than he was paid as a Royal?
A) The Dodgers needed a superstar to attract fans to their games. The Royals had no need to attract fans to their games. B) The owner of the Dodgers was under more pressure from the fans and the Los Angeles media to pay Greinke a higher salary than the Royals were willing to pay. C) The Dodgers play more home games than the Royals. As a result, the Dodgers earn more revenue from ticket sales that they can use to pay player salaries. D) Greinke's marginal revenue product is higher as a Dodger than it was as a Royal.