According to the story, if __________ in the software and related services sector increases by $15 billion, real GDP will increase by __________
a) investment; $30 billion
b) consumption; $30 billion
c) consumption; $2 billion
d) investment; $2 billion
b) consumption; $30 billion
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In economic terms, tariffs are preferred to quotas because
A) domestic manufacturers gain more producer surplus. B) there is less loss of consumer surplus. C) tariffs are easier to administer. D) quotas create a greater production inefficiency. E) given the way quotas are usually administered, tariffs cause a smaller net national welfare loss.
If the price of a good increases compared to the base year, then the price level also increases
a. True b. False Indicate whether the statement is true or false
Ty lives in an apartment building and gets a benefit from playing his stereo. Olivia, who lives next door to Ty and often loses sleep due to the loud music coming from Ty's stereo, bears a cost from the noise. Olivia is threatening to call the police to force Ty to turn down his stereo. Under which of the following conditions would Ty be able to offer Olivia some amount of money to keep her from
calling the police and to allow him to continue to play his stereo loudly? a. The cost of the noise to Olivia must exceed the benefit of the music to Ty. b. The benefit of the music to Ty must exceed the cost of the noise to Olivia. c. The Coase Theorem guarantees that Olivia and Ty will always be able to come to an agreement that keeps Olivia from calling the police regardless of the individual benefits and costs. d. The cost of the noise to Olivia must exceed the benefit of the music to Ty by an amount greater than the transaction costs associated with the agreement.
As the number of stocks in a person's portfolio increases,
a. the risk of the portfolio increases, as indicated by the increasing value of the standard deviation of the portfolio. b. the risk of the portfolio increases, as indicated by the decreasing value of the standard deviation of the portfolio. c. the risk of the portfolio decreases, as indicated by the increasing value of the standard deviation of the portfolio. d. the risk of the portfolio decreases, as indicated by the decreasing value of the standard deviation of the portfolio.