Visitors to a country hosting a world soccer tournament purchase food, souvenirs, and accommodations while attending the tournament. Which of the following should these expenditures raise?
a. The host country's net exports and its net capital outflow
b. The host country's net exports but not its net capital outflow.
c. The host country's net capital outflow but nor its net exports.
d. Neither the host country's net exports not its net capital outflow.
a
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If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will
A) eat the slice of pizza. B) not eat the slice of pizza. C) be unable to choose between eating or not eating. D) eat half the slice. E) More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.
Describe the role of business inventory change in determining the equilibrium level of GDP and changes in the level of GDP
Suppose an MP3 player sells for $75 in the United States and 50 pounds in Britain. Which exchange rate is consistent with purchasing power parity?
a) 1.50 pounds for $1. b) 1 pound for $1.50. c) 3 pounds for $1. d) 1 pound for $1.
One economic advantage of a large share of exports in GDP is that countries
A) can reduce their budget deficits. B) can purchase the imports they need. C) can maintain lower rates of unemployment. D) develop more labor-intensive industry.