China exports toys to the United States; in a closed economy China must have a domestic price that is ________ the world price of toys.
A. less than
B. equal to
C. close to
D. greater than
Answer: A
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Transfer payments include
A) open market sales. B) Social Security. C) consumption taxes. D) dividends.
The Smithsonian Agreement of 1971 was hailed by President Nixon as a fundamental reorganization of the international monetary system. In fact, what it accomplished was
A) the revaluation of the dollar. B) the devaluation of the dollar. C) the reduction of the gold content of the dollar. D) the elimination of gold backing for the dollar. E) Both B and C.
Table 5.3National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$8,200Exports$1,700Government purchases of goods and services$2,500Social Security taxes$1,900Net investment$1,400Indirect business taxes$1,400Imports$1,900Gross investment$1,800Corporate income taxes$600Personal income taxes$1,500Corporate retained earnings$130Net foreign factor income$100Government transfer payments to households$1600Net interest payments to households$500On the basis of Table 5.3, the value of the income aggregate that is defined as "the amount of output we could consume without reducing our stock of capital" (also known as the net domestic product) is
A. $11,900 billion. B. $12,300 billion. C. $10,700 billion. D. $12,400 billion.
What is your total consumer surplus at the optimal consumption level?
a. $2 b. $3 c. $11.50 d. $3.50