Suppose that a country has $120 billion of national saving, and $80 billion of domestic investment. Is this possible? Where did the other $40 billion of national savings go?
This is possible for an open economy. The remaining $40 billion is for net capital outflow in the form of purchases of foreign-owned assets by this country's residents. Domestic residents can save by buying U.S. assets or by buying foreign assets.
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In the United States, the market for health care is very competitive, with little variation in price for similar medical procedures
Indicate whether the statement is true or false
Firms that produce ________ products must be ________ competitive
A) differentiated; imperfectly B) differentiated; perfectly C) standardized; imperfectly D) standardized; perfectly E) exported; imperfectly
When two people are on the contract curve, the allocation of goods
A) cannot be improved. B) is pareto efficient. C) is such that neither individual can be made better off without making the other worse off. D) All of the above.
Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.
a. income gap b. market equilibrium c. law of demand d. price model