Planned investment may differ from actual investment because of:
A. unplanned changes in inventories.
B. changes in government purchases and net exports.
C. the marginal propensity to consume.
D. fluctuations in preset prices.
Answer: A
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Which of the following is a limitation of demand estimation through price experimentation?
A. This approach is comparatively more expensive than the other approaches of demand estimation. B. There is no uniform result as the demand will differ, depending on whether customers anticipate that a price change is permanent or temporary. C. Direct market tests like price experimentation are controlled experiments and will not reflect the effects of other changes in the market. D. Consumers have incentives to be less truthful in their reaction to price changes, which will provide flawed data.
According to the Congressional Budget Office, from the 1970s to the 2000s, the natural rate of unemployment in the United States:
A. remained relatively stable. B. increased. C. fell. D. fell to zero, and has since become negative.
Suppose we have an economy for which G = 1100, T = 800, S = 230, and I = 230. If I falls to 150, the economy's trade deficit
A) increases from 0 to 80. B) decreases from 300 to 220. C) decreases from 0 to -80. D) decreases from 70 to -10. E) increases from 0 to 70.
Which of the following is an example of income inequality between nations? a. An electronics firm paying less than the U.S. minimum wage because it moved its manufacturing operations to Mexico. b. The opportunity cost of producing wheat in the U.S. is less than that in the United Kingdom
c. A pair of tennis shoes costing $150 in the U.S. costs $220 in the United Kingdom. d. The cost of producing wine in the U.S. is more than that in Italy.