What is the relationship between U.S. real GDP and U.S. imports?
What will be an ideal response?
When U.S. real GDP increases, so does U.S. income. And the increase in income leads to an increase in U.S. imports.
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What is a downside of trade protection?
a. Instead of protecting U.S. interests and giving domestic manufacturing an advantage over items manufactured elsewhere, it can have the unintended effect of driving the manufacturing completely out of the country. b. It can give U.S. interests and domestic manufacturing too much of an advantage over items manufactured elsewhere, having the unintended effect of driving the manufacturing completely out of the country. c. It can give U.S. interests and domestic manufacturing too much of an advantage over items manufactured elsewhere, having the unintended effect of bringing more manufacturing into the country than can be handled. d. Instead of protecting U.S. interests and giving domestic manufacturing an advantage over items manufactured elsewhere, it can have the unintended effect of bringing more manufacturing into the country than can be handled.
The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains should have been higher. The Secretary's statement is a(n) ____ economic statement, and the labor head's statement is a(n) ____ economic statement
a. normative; normative b. normative; positive c. positive; normative d. positive; positive e. proper; improper
One reason that governments may find it useful to sponsor universities and basic research is that to a large extent knowledge is generally a private good
a. True b. False Indicate whether the statement is true or false
If total revenue increases when price increases:
A. demand is inelastic. B. demand is unit elastic. C. demand is elastic. D. Any of these could be true.