When domestic assets in the United States increase
A. there is no change in the U.S. debt to the rest of the world.
B. the U.S. residents are increasing their debt to the rest of the world.
C. the U.S. residents are decreasing their stock of assets.
D. the U.S. residents are reducing their debt to the rest of the world.
Answer: A
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Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A
A) decreases the supply of good B. B) increases the supply of good B. C) decreases the demand for good B. D) increases the demand for good B.
In terms of investing, what is suggested by the random walk theory?
a. Future stock prices cannot be predicted. b. Stocks are a safer investment than bonds. c. Long-term investments are risky but necessary. d. Wealthy people are prepared to handle stock risks.
A recession will occur if an economy's actual GDP ____ its potential GDP
a. rises above b. equals c. falls below d. grows faster than
Figure 3-18
Refer to . Which area represents consumer surplus at a price of P1?
a.
ABD
b.
ACF
c.
BCDE
d.
DEF