Answer the following statements true (T) or false (F)
1. If the University of Missouri, a public school, builds a new laboratory, then it will be counted as part of I g in GDP.
2. Government purchases are the largest component of aggregate expenditures in the United States.
3. When U.S. households buy new imported European and Japanese cars, the total value of the
cars is counted as part of C in the GDP accounts.
4. Net exports are positive when exports are greater than imports.
1. FALSE
2. FALSE
3. TRUE
4. TRUE
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In the United States for the year 2012, the federal government had a ________ so the national debt was ________
A) budget deficit; increasing B) budget surplus; increasing C) budget surplus; decreasing D) balanced budget; not changing E) budget deficit; decreasing
Open market operations refer to the buying and selling of ________ by the ________ to control the money supply
A) Treasury securities; Federal Reserve B) stocks and bonds; Treasury Department C) stocks and bonds; Federal Reserve D) Treasury securities; Treasury Department
For the monopolistic competitor, which of the following is INCORRECT?
A) Because the firm is not a perfect competitor, its demand curve slopes downward. B) The marginal revenue curve is downward sloping and lies below the demand curve. C) The profit-maximizing rate of output arises at the point at which the marginal cost curve intersects the marginal revenue curve. D) If the firm in a monopolistically competitive industry were making economic losses, new firms will enter the industry.
Which of the following is characteristic of an oligopolistic industry?
a. few firms b. interdependence c. large barriers to entry d. All of the above