If Y = $500 billion, autonomous consumption = $300 billion, and the marginal propensity to save = 0.20, then saving will equal:
a. ?$200 billion.
b. $200 billion.
c. ?$100 billion.
d. $100 billion.
e. $40 billion.
a
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The gains from trade include:
i. lower prices from competition ii. greater output from specialization iii. greater variety of goods and services available A) ii only B) i and iii only C) i and ii only D) i, ii, and iii E) ii and iii only
A country will realize no gains from trade if
A) pre-trade and free-trade relative prices are identical. B) all countries employ the same technology. C) it does not have an absolute advantage in at least one good. D) its wage exceeds the world average. E) pre-trade and free-trade relative prices are not identical.
In the one-period model, what do we assume about household preferences?
A) Households prefer more to less. B) Households like money. C) Households dislike taxes. D) Households care about others.
Even with a limited number of governments, everyone's government demand can be met
a. True b. False