Net exports equals
A) exports of goods and services minus imports of goods and services.
B) imports of goods and services minus exports of goods and services.
C) the government sector balance plus the private sector balance.
D) Both answers A and C are correct.
D
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Refer to Table 15-1. What is the firm's profit-maximizing output and what is the price charged to sell this output?
A) P = $65; Q = 14 B) P = $70; Q = 13 C) P = $80; Q = 11 D) P = $85; Q = 10
When banks operate to match savers and borrowers to increase the efficiency of financial markets, their role is known as
A) financial intermediary. B) lender of the last resort. C) financial market regulator. D) central bank.
If an economy saves 20 percent of any increase in real Gross Domestic Product (GDP), then an increase in investment of $2 billion can produce an increase in real Gross Domestic Product (GDP) of as much as
A) $2 billion. B) $10 billion. C) $0.4 billion. D) $1.6 billion.
Economist David Ricardo argued that rent
a. is unethical b. would be higher if the country opened its doors to international trade c. determines the value of the goods produced with the asset d. depends on price and not, as commonly thought, price depends on rent e. can only be earned on land