Suppose the US imposes tariffs on China, which retaliates with tariffs of its own. The ensuing trade war causes both countries to begin producing goods at higher costs than before because of the loss of comparative advantage. The result is a direct effect on the production function, which causes the ________ to shift ________.
A. LM curve; left
B. FE line; left
C. IS curve; left
D. IS curve; right
Answer: B
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State and local income taxes should be deducted from federal income tax.
A. True B. False C. Uncertain
A profit-maximizing firm would
a. consider opportunity costs rather than accounting costs when making decisions about output. b. expand current output if the revenues expected from doing so were less than the expected costs. c. enlarge its current plant size if present depreciation costs were less than average variable costs. d. increase output in the next period if accounting profits during the previous period were positive.
An advance in knowledge is
A. an innovation. B. human capital accumulation. C. an invention. D. all of the above
In 2014 , the U.S. GDP accounts for ________ of world output
A) 20% B) 23% C) 45% D) 50%