Answer the following statements true (T) or false (F)
1. In terms of combined volume of exports and imports, the largest trading partner of the United States is China.
2. The combined total of exports plus imports accounted for more than 50% of U.S. GDP in 2012.
3. The U.S. has a trade deficit in goods, but a trade surplus in services.
4. When a country has a comparative advantage in some product, it has a higher domestic opportunity cost, but can charge a lower price for the product.
5. Nation A can produce either 6 units of steel or 8 units of wheat. Nation B can produce either 10 units of steel or 10 units of wheat. These data suggest that Nation A has the comparative advantage in producing wheat.
1. F
2. F
3. T
4. F
5. T
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What does the investment spending multiplier measure?
A) ?Y / ?I B) ?I / ?Y C) ?I + ?Y D) ?I * ?Y
Cross-sectional data observed at several points in time is known as:
A) time series data. B) panel data. C) experimental data. D) none of the above.
If consumption of a good creates positive externalities, then
a. private demand is greater than marginal social benefit b. marginal private benefit is less than marginal social benefit c. private cost is less than marginal social cost d. marginal social cost is greater than marginal social benefit e. marginal private cost is zero
Which of the following is NOT an example of a good or service provided by a market?
A. Metered street parking in Sacramento, California B. Pizza in Toledo, Ohio C. The air we breathe D. Illegal sports betting