How do economists measure the "openness" of an economy? Explain if the U.S. economy has become more or less "open" over the past 60 years?
What will be an ideal response?
Economists measure the "openness" of an economy in terms of how much it trades with other economies. Over the past 60 years, the U.S. economy has become more open, with both imports and exports steadily increasing as a percentage of GDP.
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For an individual concerned with whether or not the Social Security system provides a good rate of return on the money paid into the system, she only needs to look at the return on investment for previous beneficiaries
a. True b. False
After the U.S. government had approved the feeding of hormones to U.S. beef cattle, several western European nations restricted the import of beef from the U.S. Which of the following tools of commercial policy had been put to use in this situation?
a. Tariff b. Quota c. Health and safety standards d. Subsidy e. Government procurement
If real disposable income increased by $10,000 and real consumption spending increased by $7,500, what is the marginal propensity to consume (MPC)?
a. 0.25 b. 1.0 c. 0.75 d. 1.75 e. 1.25
The value of the multiplier increases when the MPC increases
Indicate whether the statement is true or false