Macroeconomic 6,7,18

According to the theory of comparative advantage, a country should

specialize in and export goods with the lowest opportunity cost.

Which of the following would be counted in 2019's GDP?

the bonus check a stockbroker gets from his/her company in 2019

Proprietors' income includes all of the following except

the income of all businesses—incorporated and unincorporated.

Refer to Table 6.1. The value of government spending in billions of dollars is

500

If you are traveling in China and you purchase a meal that costs 140 yuan and the current exchange rate is 7 yuan to the dollar, then the price of the meal in U.S. currency is

$20

Suppose that net investment in 2018 was $20 billion and depreciation was $4 billion. Gross investment in 2018 was

$24 billion

If an economy produced 10 pizzas at $20 each and fifteen gallons of root beer at $5 each, the total value of these goods and services would be

$275

If national income is $600 billion, personal income is $400 billion, personal taxes are $120 billion, then disposable income equals

$280 billion

Refer to Table 18.1. In Mexico, the opportunity cost of 1 bushel of bananas is

1 bushels of oranges.

Refer to Table 6.1. The value for net exports in billions of dollars is

150

Refer to Table 18.1. In Guatemala, the opportunity cost of 1 bushel of oranges is

2 bushel of bananas

If disposable personal income is $400 billion and personal saving is $8 billion, the personal saving rate is

2%

Refer to Table 6.1. Personal consumption expenditures in billions of dollars are

2000

Refer to Table 6.1. The value for gross private domestic investment in billions of dollars is

425

If a country has a trade surplus of $40 billion, which of the following can be true?

The country's exports are $160 billion, and its imports are $120 billion.

A country's trade is balanced when

its net exports equal to zero.

China has a comparative advantage in textiles and an absolute advantage in both textiles and radios. Japan has a comparative advantage in radios. According to this scenario

China should export textiles and import radios.

Country A would have an absolute advantage compared to Country B in the production of corn if

Country A uses fewer resources to produce corn than Country B does

Refer to Figure 18.1. Which of the following statements is true?

The United States has an absolute advantage in the production of soybeans and alfalfa, but a comparative advantage only in the production of alfalfa.

Which of the following is included in both the U.S. GDP and GNP?

The value of all cars produced by General Motors in the U.S.

Refer to Table 18.1. Guatemala has

a comparative advantage in banana production.

Which of the following is a good or service counted in GDP?

a new tire you buy for your personal car

Gross national product is the total market value of

all final goods and services produced by resources owned by a country, regardless of where production takes place.

Refer to Table 18.1. Guatemala should specialize in and export ________, and Mexico should specialize in and export ________.

bananas; oranges

The main advantage of trade between two countries is that

both countries have consumption choices beyond their current resource and production constraints.

The theory of ________ is credited to David Ricardo.

comparative advantage

The single largest expenditure component in GDP is

consumption.

The purpose of the Corn Laws was to

discourage imports and encourage exports, and thus keep the price of food high.

According to the theory of comparative advantage, a country

exports the goods in which its has a comparative advantage

When calculating GDP, ________ are added and ________ are subtracted.

exports; imports

If the price of a car in the United States is $26,000, and the exchange rate between the dollar and the British pound rises from $1.50 to $2.00 per pound, then the price of the American car in Britain will

fall

If the value of net exports is negative, then

imports exceed exports

If personal saving is -$10 billion and disposable personal income is $370 billion, then personal consumption spending

is $380 billion