Which of the expenditure components of GDP can be negative?
A. consumption spending on durables.
B. net exports.
C. consumption spending on services.
D. government purchases of goods and services.
Answer: B
You might also like to view...
From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the marginal
A. benefit of more insurance coverage is greater than the total benefit. B. cost of more insurance coverage is negative. C. cost of more insurance coverage is equal to the payment for the extra coverage. D. cost of more insurance coverage is less than the marginal benefit.
Refer to Figure 27-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue
A) contractionary automatic stabilizers. B) expansionary fiscal policy. C) contractionary fiscal policy. D) expansionary monetary policy. E) contractionary monetary policy.
The idea that people will not consciously make decisions that make them worse off is known as
A) rationality assumption. B) the decision duality. C) Adam Smith's doctrine. D) incentive assumption.
Countries engaged in international trade specialize in production based on
A) relative price levels. B) relative foreign exchange rates. C) comparative advantage. D) the differences in transportation costs.