Which of the following statements is FALSE?
A) The federal budget deficit in 2004 was about 4 percent of the GDP.
B) During the past five years, the U.S. public debt has been increasing.
C) The public debt of $25 billion is the accumulated debt of all U.S. individuals, firms, and institutions.
D) A budget deficit of $25 billion in a given year increases the public debt by $25 billion.
Ans: C) The public debt of $25 billion is the accumulated debt of all U.S. individuals, firms, and institutions.
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MacDougall compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the
A) classical theory. B) the Heckscher-Ohlin theory. C) the Linder hypothesis. D) All of the above.
Holding other things constant, if the Japanese Yen, appreciates, it makes the Japanese products
a. Less attractive to US customers b. More attractive to US customers c. Neither more nor less attractive to US customers d. None of the above
Gains from trade will be possible as long as
A) levels of utility differ. B) utility functions differ. C) marginal rates of substitution differ. D) endowments differ.
Based on labor-market studies using regression analysis, once productivity-related characteristics are accounted for, the remaining wage gap between women and men is approximately
A) 2%. B) 5%. C) 15%. D) 20%.