Assume that a $1.00 increase in exports increases GDP by $3.00, and a $1.00 increase in income increases import spending by $0.15. In this case, a ________ million increase in exports will increase net exports by $550 million.
A. $550
B. $700
C. $1,000
D. $1,350
Answer: C
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Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
A negative externality exists if
A) there are quantity controls in a market. B) the marginal social cost of producing a good or service exceeds the private cost. C) there are price controls in a market. D) the marginal private cost of producing a good or service exceeds the social cost.
As of 2004, the U.S., Canada, and Western Europe account for 60 percent of the world's annual consumption of goods and services while having only about 11 percent of the world's population
Indicate whether the statement is true or false
The rate of return on an investment in medical education
a. is inversely related to the length of time spent in formal schooling. b. is inversely related to income. c. will increase with an increase in the availability of student loans. d. is much higher than the rate of return on an undergraduate business degree. e. is inversely related to the number of years in the profession.