According to international trade theory, a country can gain if it
a. imports goods when they can be purchased cheaper from domestic producers.
b. imports goods when foreigners are willing to pay higher prices than domestic consumers.
c. specializes in producing those things it does best (produces at a low cost).
d. trades with high-income countries but not low-income countries.
C
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The opportunity cost of being unemployed tends to be the highest in which of the following countries?
A) Canada B) France C) the United Kingdom D) the United States
Suppose Congress increased spending by $100 billion and raised taxes by $100 billion to keep the budget balanced. What will happen to real equilibrium GDP?
A) There will be no change in real equilibrium GDP. B) Real equilibrium GDP will fall. C) Real equilibrium GDP will rise. D) Real equilibrium GDP will initially rise, but then fall below its previous equilibrium value.
All of the following can cause conflict between divisions EXCEPT
a. Coordination between divisions does not benefit all divisions equally b. managers of cost centers care too little about enhancing revenues c. managers are rewarded only for actions that profit their own division generates, regardless of the effects on other divisions d. corporate executives cannot tell when one divisional manager's decisions are appropriate or not
If the MPC is 0.8, and the government spends an additional $100b, the overall effect on GDP will be:
A. $400b. B. $500b. C. $120b. D. $180b.