In Figure 3-7 above, if the natural real GDP is $2500, AP = $250, and the change in "a" = change in I = change in NX = 0, then the natural real GDP could be attained with a
A) $250 decrease in T.
B) $250 increase in G.
C) $1250 increase in G.
D) $500 decrease in T.
B
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In monopolistic competition, a firm can set the price for its product because of
A) easy entry and exit. B) economic profits. C) product differentiation. D) many competitors. E) the firm's upward sloping demand curve.
Stan, who is risk averse, can invest in project A or project B. Project A returns $3,000 with probability 1/2 and $9,000 with probability 1/2. Project B returns nothing with probability 1/2 and $12,000 with probability 1/2. For Stan, project A has
A) greater expected wealth and greater expected utility than project B. B) lower expected wealth and lower expected utility than project B. C) the same expected wealth and the same expected utility as project B. D) the same expected wealth but higher expected utility than project B.
From 2005-2008, the unemployment rate in the United States was significantly different from the rates in France, Germany, and Italy
This is often attributed to the idea that the rate of ________ unemployment in these European countries was ________ than it was in the United States. A) frictional; lower B) structural; higher C) cyclical; lower D) seasonal; higher
What do tests of the gravity equation for trade between Canadian provinces and American states indicate?
a. Individual state and individual provincial GDPs are negatively related to the amount of trade between individual states and provinces. b. Individual state and individual provincial GDPs are positively related to the amount of trade between individual states and provinces. c. Individual state and individual provincial GDPs are not at all related to the amount of trade between individual states and provinces. d. The gravity equation does not apply to U.S.Canadian trade.