A closed economy is one that
a. uses tariffs.
b. uses quotas to restrict trade.
c. uses exchange controls.
d. does not trade with other nations.
d
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Convergence refers to closing the gap in ________ between poorer countries and richer countries
A) real GDP B) the growth rate in real GDP C) real GDP per capita D) the growth rate in real GDP per capita
Which of the following statements is TRUE about profits?
A. Profits are excluded from the circular flow of the income diagram. B. The only portion of profits that are included in the circular flow diagram are the portion paid out in the form of dividends. C. Profits are considered a cost of doing business. D. Profits are considered one of the resources necessary for production.
In constructing the monopolist's input demand curve, which of the statements is FALSE?
A. A monopoly restricts output and hires fewer units of labor than a perfectly competitive industry. B. The supply curve a monopoly faces is horizontal because the monopoly is a price taker. C. The demand curve has a negative slope due to the law of diminishing marginal product. D. Marginal revenue is always positive.
Refer to the information provided in Figure 7.4 below to answer the question(s) that follow. 
Figure 7.4Refer to Figure 7.4. The marginal product of the sixth worker is
A. -50. B. -5. C. 5. D. 8.33.