If GDP exceeds GNP, we know with certainty that
A) a budget deficit exists.
B) a trade surplus exists.
C) a trade deficit exists.
D) receipts of factor income from the rest of the world exceed payments of factor income to the rest of the world.
D
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Which of the following is an automatic stabilizer?
A. Social Security benefits B. Military expenditures C. Property taxes D. Unemployment compensation
Refer to the scenario above. Which of the following statements is true of the model?
A) The model predicts that two additional years of education is likely to increase future earnings by 60 percent. B) The prediction of the model can be applied to unlimited years of additional education. C) The predictions of this model cannot be tested empirically. D) The prediction of the model is accurate and will hold for all individuals.
When the firms in a perfectly competitive market are incurring economic losses, some of the firms will exit the market, causing the supply curve to shift left and market price to rise until losses incurred by the remaining firms are eliminated
Indicate whether the statement is true or false
Which of the following is the best description of the risks of corporate bonds?
a. the firm declines to pay dividends b. both bankruptcy and higher market interest rates c. only bankruptcy d. lower market interest rates e. both the firm declines to pay dividends and higher market interest rates