If an economy is producing a level of output that is on its production possibilities curve, the economy
A) has idle resources.
B) has idle resources but is using resources efficiently.
C) has no idle resources but is using them inefficiently.
D) has no idle resources and is using resources efficiently.
Ans: D) has no idle resources and is using resources efficiently.
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Mitsubishi Corporation of America builds a car in Normal, Illinois, and ships it to Japan for sale. In which country’s GDP is this production included?
A. Japan B. Both Japan and the United States C. In Japan as retail value and the United States as wholesale value D. Half the value in Japan and half in the United States E. The United States
If income in Africa increases by 4% and demand for poultry increases by 8%, then the income elasticity for poultry demand in Africa is projected to be:
a. -0.8 b. 0.8 c. 2 d. 1.25 e. 1.50
Which of the following is included in the expenditures approach to GDP?
A. Spending on meals by consumers at restaurants B. Expenditures on used clothing at garage sales C. Value of stocks and bonds bought by businessmen D. Government spending on welfare payments
The main argument against using trade restrictions to retaliate against a country that raises its trade restrictions against you is
a. international trade may be further reduced between the two countries and your gains from trade become even smaller b. war may occur if mutual retaliations get out of hand c. both countries may find that they have greater access to each other's markets d. black markets will thrive as entrepreneurs find ways to enter each country's markets e. population will migrate from one country to the other in search of higher-paying jobs