An increase in market demand will cause an increase in industry output in the long run because
a. new firms enter the industry.
b. new firms enter the industry and all firms increase their output.
c. all firms decrease their output but more new firms enter.
d. no firms enter but the existing firms increase their output.
a
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If a country has an absolute advantage in the production of every good, it cannot benefit from trade with other countries
a. True b. False
Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion
The following national income statistics are in billions of dollars
Refer to the above data. Gross domestic product in this economy is:
A.
$400 billion
B.
$442 billion
C.
$483 billion
D.
$517 billion
An export is a product
A) produced in a foreign country and purchased by the residents of the home country. B) produced in the home country and sold in another country. C) produced in and sold to the residents of a foreign country. D) produced in and purchased by residents of the home country.