If the recessionary GDP gap is $500, then the proper fiscal stimulus when faced with an upward-sloping AS curve is to
A. Shift the AS curve rightward by less than $500.
B. Shift the AD curve rightward by $500.
C. Shift the AD curve leftward by $500.
D. Shift the AD curve rightward by more than $500.
Answer: D
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Which point best represents the economy in a depression?
A. Point H
B. Point F
C. Point I
D. Point G
If Colombia has a comparative advantage over Mexico in the production of coffee, then:
A. Colombia probably sells coffee to Mexico. B. Mexico is more productive at making coffee than Colombia. C. Colombia has the ability to produce more coffee than Mexico with the same resources. D. Mexico should trade coffee to Colombia.
The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
Calculate the tariff revenue of the country's government.
A. $76 million B. $28 million C. $40 million D. $400,000
Most economists contend that:
A. noncash gifts are more efficient than cash gifts. B. noncash gifts are less efficient than cash gifts. C. noncash and cash gifts are equally efficient. D. government can assess consumer preferences better than can consumers themselves.