Differentiate between an open and a closed economy? Do you agree that the U.S. economy is more open among the advanced industrial countries in the world?
What will be an ideal response?
An economy is called relatively open if its exports and imports constitute a large share of its GDP. An economy is considered relatively closed if they constitute a small share.
No. The United States stands out as among the most closed economies of the advanced, industrial nations. We export and import a smaller share of GDP than nearly all advanced industrial nations.
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Define the shutdown point. Explain why the firm shuts down in the short run if the price falls below this point
What will be an ideal response?
Excluded from the GDP are
a. military services. b. postal services. c. medical services. d. non monetary transactions.
When your outcomes depend on another's choices, asking ________ is the key to good decision making.
A. what the wants and constraints are of those involved B. what the trade-offs are C. how will others respond D. why everyone isn't already doing it
Which of the following items can you definitively say is part of the underground economy?
A. Income from legal pursuits. B. Payments to family members for performing household tasks. C. Unreported income. D. Child care services provided by a legitimate company.