The equation for GDP using the expenditure approach is
A. GDP = C + I + G - EX - IM.
B. GDP = C + I + G + EX - IM.
C. GDP = C + I + G + EX + IM.
D. GDP = C + I + G + (IM - EX).
Answer: B
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Why do price ceilings tend to cause persistent imbalances in the market?
a. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. b. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. c. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. d. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
A direct relationship occurs when
A. the two variables being compared change in opposite directions, or when one goes up the other goes down. B. the two variables have no identifiable relationship with each other. C. a change in one of the variables causes a change in the other variable in any direction. D. the two variables being compared change in the same direction, or when one goes up the other also goes up.
If both the demand curve and the supply curve shift to the right, we can unambiguously conclude that the
A. equilibrium quantity will increase. B. market clearing price will increase. C. equilibrium quantity will decrease. D. market clearing price will decrease.
Today, the share of international trade in U.S. GDP is
A) almost 0 percent. B) about 10 percent. C) close to 30 percent. D) more than 150 percent.