If net exports are reduced, the expenditure schedule will shift
a. downward and equilibrium real GDP will rise.
b. upward and equilibrium real GDP will rise.
c. downward and equilibrium real GDP will fall.
d. upward and equilibrium real GDP will fall.
c
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The marginal cost is the:
a. b and c. b. change in total cost as the quantity changes by one unit. c. change in total variable cost as the quantity changes by one unit. d. change in total fixed cost as the quantity changes by one unit. e. same as the fixed cost when average fixed cost is at a minimum.
Joe consumes 48 units of food and 12 units of clothing. If food is an inferior good:
A. Joe would strictly prefer receiving $10 in cash to receiving a $10 gift certificate at a clothing store. B. Joe would strictly prefer receiving a $10 gift certificate at a clothing store to receiving $10 in cash. C. upon receiving a $10 gift certificate at a clothing store, Joe would consume less clothing and more food. D. Joe would be indifferent between receiving a $10 gift certificate at a clothing store and receiving $10 in cash.
The index of intra-industry trade is calculated as:
a. the minimum of imports and exports divided by the average of imports and exports. b. the maximum of imports and exports divided by the sum of imports and exports. c. imports divided by exports. d. imports plus exports divided by the average of imports and exports.
An increase in the quality of items included in the Consumer Price Index would cause the index to
A. overstate the true amount of unemployment. B. overstate the true amount of inflation. C. understate the true amount of unemployment. D. understate the true amount of inflation.