When real GDP is ________ potential GDP, the unemployment rate is ________ the natural unemployment rate
A) greater than; less than
B) less than; equal to
C) equal to; greater than
D) greater than; greater than
A
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International capital flows are:
A. exports plus imports. B. sales of domestic goods or services to foreigners. C. purchases of foreign goods or services. D. purchases or sales of real and financial assets across international borders.
Costly actions that a firm undertakes to gain monopoly status are called
a. monopolization. b. rent-seeking activity. c. monopoly-profit seeking. d. collusion.
Total surplus measures the
a. loss to buyers from paying higher prices plus the benefit to sellers from receiving lower prices. b. buyers' willingness to pay less the sellers' costs. c. fairness of the distribution of resources in society. d. value to the government of goods and services sold in society.
Congressman Smith cites the "jobs argument" when he argues in favor of restrictions on trade; he argues that everything can be produced at lower cost in other countries. The likely flaw in Congressman Smith's reasoning is that he ignores the fact that
a. there is no evidence that any worker ever lost his or her job because of free trade. b. unemployment of labor is not a serious problem relative to other economic problems. c. the gains from trade are based on comparative advantage. d. the gains from trade are based on absolute advantage.