At one time, it was believed that the way for a nation to prosper was to export as much as possible while importing as little as possible. More money would flow into a country than out of a country. Is this really a sound economic strategy? What is the relationship between exports and imports?
This is a bad strategy. When few goods are imported, foreign countries will not have the currency necessary to buy a country's exports, and the volume of trade must therefore decline. For international trade to take place at all, a country must both import and export. There cannot be one without the other.
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In 2011, total output of goods and services in the United States was approximately
a. $10 trillion. b. $12 trillion. c. $15 trillion. d. $20 trillion.
How do taxes and government cash transfer payments alter the measured distribution of income?
a. Taxes, because they are included in the official data on income distribution, are reflected in the data, but cash transfer payments, which redistribute income to lower income households, are not included. b. Cash transfer payments are included in the official data on income distribution, but taxes are not. c. Both taxes and cash transfer payments are included in the official data on income distribution d. Neither taxes or cash transfer payments are included in the official data on income distribution
A worker who loses a job at a call center because business firms switch the call center to another country is an example of:
A. cyclical unemployment. B. disguised unemployment. C. frictional unemployment. D. structural unemployment.
A cake is to be shared by two people. Both desire the largest piece possible. One of the two will cut the cake. Under which of the following situations will the cutter adopt a Rawlsian social welfare function?
A) The person cutting the cake chooses the first piece. B) The person not cutting the cake chooses the first piece. C) The two individuals will bid for the right to cut the cake and choose first. D) The two individuals will toss a coin for the right to cut the cake and choose first.