If a budget is cyclically balanced, the government should run a surplus when the economy experiences an expansionary gap
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the table above. If the world price of trousers is $5 per pair, then which of the following statements is true?
A) All the four countries will import trousers. B) All the four countries will export trousers. C) Country A and Country D will export trousers, whereas Country B and Country C will import trousers. D) Country B and Country C will export trousers, whereas Country A and Country D will import trousers.
Refer to Table 9-9
a. Which country has an absolute advantage in the production of both light bulbs and flash drives? b. Which country has a comparative advantage in the production of light bulbs? c. Which country has a comparative advantage in the production of flash drives? Table 9-10 Pens Pencils Tran 40 160 Farah 50 150 Table 9-10 shows the output per week for pens and pencils by Tran and Farah.
The principal demanders of U.S. dollars in the foreign exchange market are:
A. the Federal Reserve. B. U.S. households or firms wishing to purchase foreign goods or assets. C. U.S. households or firms wishing to purchase U.S. goods or assets. D. foreigners wishing to purchase U.S. goods or assets.
Which of the following is an example of market "production," as used by economists?
A) Garvey takes out a low-cost government loan to start his pet-sitting business. B) Heidi makes a pizza for her family's dinner. C) Katrina works as a cashier at the local produce stand. D) The theatre and film studies department in Fine Art's College stages a play at the local theatre.