Last year a country purchased $1.5 trillion worth of goods and services from foreign countries, sold $2 trillion worth of goods and services to foreign countries and had national saving of $1.25 trillion. What was the value of its domestic investment? Show your work
Net capital outflow = Net exports = $2 trillion - $1.5 trillion = $.5 trillion.
Saving = investment + net capital outflow
$1.25 trillion = investment + $.5 trillion
$.75 trillion = investment
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Which of the following is considered a key economic influence on the capacity of market economies to promote unprecedented growth?
A) political changes B) religious beliefs C) historical accidents D) free competition
Refer to the above supply and demand graph. In the graph, point A is the current equilibrium level of output of this product and point B is the optimal level of output from society's perspective. S is the supply curve without a tax and St is the supply curve with a tax. If government corrects this externality problem with a tax so that all the costs are included in the cost of production, then the product price will be set at point:
A. E. B. D. C. F. D. G.
Which of the following will NOT be true if the antitrust laws are successful?
A) Producers will earn zero economic profits in the long-run. B) Firms will not restrict output. C) Firms will produce the competitive output. D) Firms will produce the quantity at which marginal cost equals marginal revenue and charge a price that is greater than marginal cost.
The reservation wage is
A) the wage that an employer must pay workers to reduce turnover to a reasonable level. B) the wage that ensures a laid-off individual will wait for re-hire, rather than find another job. C) the lowest wage firms are allowed by law to pay workers. D) the wage offer that will end a labor-strike. E) none of the above