The table below shows the consumption schedule for a hypothetical economy. All figures are in billions of dollars.RGDPConsumption$600$590610598620606630614640622650630660638If investments were fixed at $12, taxes were zero, government purchases of goods and services were zero, and net exports were zero, then equilibrium real GDP would be $610 initially. If government purchases were then raised from $0 to $4, other things constant, the equilibrium real GDP would become
A. $630.
B. $640.
C. $650.
D. $660.
Answer: A
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The connection between domestic saving and investment to the trade balance explains why economists view the balance of trade as a fundamentally __________________ phenomenon.
a. microeconomic b. positive c. negative d. macroeconomic
Ultimately, trade agreements are necessary because
A. farmers need to be assured of access to foreign markets. B. exports make everyone worse off. C. tariff reduction can be politically popular within many countries. D. tariff reduction can be politically unpopular within many countries.
In which of the following countries has economic growth been sufficiently high that income would double every ten years?
a. Singapore b. Nigeria c. India d. Indonesia
A conglomerate occurs when:
A. the products of the merging firms were not related in any manner before the merger. B. the merger partners were competitors. C. one firm is a domestic firm, and the other is a foreign company. D. the firms stood in a buyer-seller relationship before the merger.