When income levels in the rest of the world increase, what is the effect on the home TB?
a. It decreases because of expenditure switching.
b. It decreases because of an increase in imports.
c. It increases because of an increase in exports.
d. It increases because of expenditure switching.
Ans: c. It increases because of an increase in exports.
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Answer the question on the basis of the following data. All figures are in billions of dollars. Gross Investment 18 National Income 100 Net Exports 2 Personal income 85 Personal Consumption Expenditures 70 Saving 5 Government Purchases 20 Net Domestic Product 105 Statistical Discrepancy 0 Refer to the above data. Consumption of fixed capital is:
a) $5. b) $10. c) $20. d) $30.
A plumber quits his job in Dallas and moves to San Francisco where additional plumbers are needed, but it takes a couple of months for him to find a job. He is said to be:
A. Frictionally unemployed B. Structurally unemployed C. Cyclical unemployed D. Underemployed
Which form of business has most of the characteristics of a regular corporation but adds the legal constraint that the company has to follow a specified nonfinancial? goal?
A. Private corporation B. S corporation C. Limited liability corporation D. Benefit corporation E. General partnership corporation
A decline in the quantity of real output demanded along the aggregate demand curve is a result of a(n):
a. Decrease in the price level b. Decrease in the level of income c. Increase in the level of income d. Increase in the price level