If real GDP is less than potential GDP, then:
A. the output gap is positive.
B. the actual unemployment rate is less than the natural rate of unemployment.
C. the actual unemployment rate equals zero.
D. the actual unemployment rate is greater than the natural rate of unemployment.
Answer: D
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If two products satisfy a consumer equally, the consumer will choose the product
a. with the lower marginal utility b. with the higher marginal utility c. with the lower price d. with the higher price
A differentiated product has
A) many perfect substitutes. B) no close substitutes. C) no substitutes of any kind. D) close but not perfect substitutes. E) many different complements.
When products from a high-cost country within a customs union replace imports from a low-cost country that is not a member of the union, this is called:
a. trade creation. b. trade diversion. c. trade deflection. d. trade development.
Residential structures and inventories are examples of tangible capital.
Answer the following statement true (T) or false (F)