Suppose during a year an economy produces $10 trillion of consumer goods, $4 trillion of investment goods, $6 trillion in government services, and has $4 trillion of exports and $5 trillion of imports. GDP would be:
A. $19 trillion.
B. $21 trillion.
C. $24 trillion.
D. $29 trillion.
Answer: A. $19 trillion
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The government of Youland increased its spending by $100 billion. However, the corresponding change in output was much smaller than that predicted by the government expenditure multiplier. This occurs due to ________
A) crowding out B) a liquidity crisis C) the internalization of an externality D) quantitative easing
Adam Smith believed that the goal of economic activity is to amass wealth in the form of gold, and that this could best be accomplished through government carefully using tariffs and quotas to fashion favorable terms of trade with its trading partners
a. True b. False Indicate whether the statement is true or false
It is impossible to have economic growth unless a country or a region has abundant natural resources to sustain the growth
a. True b. False Indicate whether the statement is true or false
The term "underemployed" is used to describe an individual who: a. prefers full-time employment but works only part time
b. has given up looking for a job because he is discouraged about his prospects. c. is jobless because of the seasonal nature of his job. d. is jobless due to a recession in the economy.