If a country's imports of goods and services exceeds its exports, ________.
A. GDP equals the sum of consumption, investment, and government purchases
B. net exports are positive
C. GDP is less than the sum of consumption, investment, and government purchases
D. GDP exceeds the sum of consumption, investment, and government purchases
Answer: C
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When a park is funded by visitors, but not by taxpayers in general,
a. there will be too few parks because most people simply will not pay to use a park. b. visitors will be better served because poor service would lead to reductions in revenues. c. maintenance in the park will suffer because budgets will decline. d. we cannot predict what will happen because park funding by visitors has not been tried before.
Which of the following is an example of a market demand curve?
a. A graph shows the sharp increase in the purchase of cell phones last year in France. b. A graph shows how Li’s demand for tea decreases as the price increases. c. A table shows the steady increase in the price of bananas over a five-year period in the United States. d. A graph shows how the demand for HD TVs in Hawaii is affected by price changes.
Raiman's Shoe Repair produces custom-made shoes. When Mr. Raiman produces 12 pairs per week, the marginal cost of the 12th pair is $84, and the marginal revenue of the 12th pair is $70 . What would you advise Mr. Raiman to do?
a. shut down the business b. produce more custom-made shoes c. decrease the price d. produce fewer custom-made shoes
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
a. inventory is unchanged. b. inventory is accumulated. c. employment decreases. d. GDP increases.