Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of $9,000, exports of $2,500, imports of $2,700, transfer payments of $750, capital depreciation of $800, and investment of $3,000 . GDP equals
a. $24,450.
b. $11,550.
c. $15,300.
d. $20,700.
c
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Answer the following statements true (T) or false (F)
1. The simple immigration model suggests that labor migration raises the wage rate in the country of origin while reducing the wage rate in the host country. 2. Remittances by Mexican workers in the United States to their families in Mexico tend to reduce the gains from immigration to the United States and increase it for Mexico. 3. Much of the recent concerns about immigration in the U.S. have focused on green-card holders. 4. The arguments that illegal immigrants do not take away jobs from legal residents, or that illegal immigrants displace legal residents from jobs on a one-to-one basis are both false. 5. At the heart of U.S. immigration laws are immigration quotas. 6. Economic analysis suggests that immigration can either benefit or harm a nation, depending on the number of immigrants, their education, skills, work ethic and the rate at which they are absorbed into the economy.
A neighbor plants flowers in their front yard, which you can view and enjoy from your window. From your perspective, this is an example of
A. an externality. B. marginal analysis. C. property rights. D. an opportunity cost.
The above figure shows the supply and demand curves for high-skilled and low-skilled labor. Low-skilled workers earn a wage rate of
A) $15 per hour. B) $12 per hour. C) $9 per hour. D) $6 per hour.
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary