A simple two-sector circular flow diagram illustrates the flow of resources between:
a. the rest of the world and firms.
b. government and firms
c. households and government.
d. households and firms.
d
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Which of the following is true?
i. A rational choice is made on the margin. ii. Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii. Economists try to understand how the economic world works by testing normative statements. A) only i B) i and iii C) only ii D) only iii E) i and ii
The overall effect of accounting for purchases of foreign goods in GDP reduces GDP
a. True b. False Indicate whether the statement is true or false
A system of economic organization in which the ownership and control of productive capital assets rests with the state and in which resources are allocated through central planning and political decision making is called
What will be an ideal response?
According to economists, which of the following statements about international capital mobility is CORRECT?
a. International resource mobility has had no effect upon world GDP. b. International resource mobility has had a negative effect upon world GDP. c. International resource mobility has had a positive effect upon world GDP. d. International resource mobility has had such a small effect upon world GDP that it is not worth measuring.