The largest component of consumption spending is spending on nondurable goods
Indicate whether the statement is true or false
F
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According to this Application, some economists noticed that the U.S. dollar ________ largely because monetary policy in the United States had driven interest rates ________
A) depreciated; up B) appreciated; up C) appreciated; down D) depreciated; down
Refer to the table above. The current account balance is equal to
A) +$200 billion. B) +$220 billion. C) +$20 billion. D) -$220 billion. E) -$200 billion.
In 2007, European Union (EU) negotiators have offered to cut tariffs for Latin American bananas to avoid "banana wars". What are the effects of a cut in tariffs?
A) The quantity of bananas imported into the EU will increase. B) The price of bananas for consumers will increase. C) The quantity of bananas produced in the EU (such as in France and Spain) will increase. D) Europe will start to export bananas.
For a perfectly competitive firm, in the short run, which of the following statements is true?
a. A price above minimum average variable cost, but below average total cost will produce an economic profit. b. A price below minimum average variable cost will cause the firm to shut down. c. Marginal cost is parallel to the axis showing quantity of output. d. Price is always greater than marginal revenue. e. Every firm contributes a significant amount to the total market output.