Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactionsin the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactionsbecomes more negative (or less positive).
b. The GDP Price Index and current international transactionsremain the same.
c. The GDP Price Index falls, and current international transactionsremains the same.
d. The GDP Price Index falls, and current international transactionsrises.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.D
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Refer to Figure 4-6. What area represents the deadweight loss at the equilibrium price of P1?
A) G + H B) C + E C) C + E + H D) There is no deadweight loss at the price of P1.
Income per worker has been
A) converging in both the rich countries and the poor countries. B) converging in the rich countries, but not converging in the poor countries. C) converging in the poor countries, but not converging in the rich countries. D) converging in neither the poor nor the rich countries.
Pure economic profit must be at a maximum for a monopolist who has a level of output in which total revenue is at a maximum
a. True b. False Indicate whether the statement is true or false
The total earnings of a worker are represented by E = 100 + $10(24 ? L), where E is earnings and L is the number of hours of leisure. How much will the worker earn if he takes 14 hours of leisure per day?
A. $200 B. $240 C. $100 D. $150