An accounting identity is
A) when the balance of payments is running a surplus or deficits.
B) when the balance of trade is in surplus or deficit.
C) an expression of values that are equivalent by definition.
D) special drawing rights.
C
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Refer to Table 2-15. What is Jack's opportunity cost of cultivating a garden?
A) one-half of a garden cultivated B) two lawns mowed C) two-thirds of a garden cultivated. D) one and a half lawns mowed
The short-run aggregate supply curve shifts to the right when
A) output gap is higher. B) output gap is lower. C) expected inflation is higher. D) expected inflation is lower.
You have just won a cash award of $500 for academic excellence
A) The substitution effect of this award will be larger than its income effect. B) The income effect of this award will be larger than its substitution effect. C) The substitution and income effects will be of identical size. D) It is impossible to know whether the substitution effect is larger than the income effect or vice versa.
The Big Mac index compares:
A. the cost of a Big Mac all over the world. B. typical food costs, as food is the largest component of all consumption baskets. C. the cost of a typical basket for consumers all over the world. D. typical food and energy costs across different locations.