Which statement is true?
A. The United States' economic system leads to an equitable distribution of income.
B. One of the basic functions of the United States' government is to transfer some income from the rich and the middle class to the poor.
C. The price mechanism and the definition of economics are incompatible.
D. None of the statements are true.
B. One of the basic functions of the United States' government is to transfer some income from the rich and the middle class to the poor.
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Over the business cycle, real GDP fluctuates around
A) the business cycle trough. B) the business cycle peak. C) nominal GDP. D) potential GDP. E) the Lucas Wedge.
Which of the following has the largest impact on short-run movements in exchange rates?
A) growth rate of exports B) growth rate of imports C) investment opportunities D) changes in the trade deficit
According to the above table, Alpha has comparative advantage in producing
A) pizzas. B) donuts. C) both pizzas and donuts. D) neither pizzas nor donuts.
GDP counts:
A. only final goods and services, because otherwise certain things would be double-counted and the GDP would be overestimated. B. only intermediate goods and services, because those are easier to track. C. both intermediate and final goods and services because it is important to capture all values, regardless of which market they take place in. D. all values that are reported to the government.