Econ Chapters 1-5 Multiple Choice Questions
If total consumption (measured in billions of current dollars) equals $3,657, consumption of durable goods is $480, and consumption of nondurable goods is $1,194, then consumption of services is: Select one: a. $1,983. b. $2,083. c. $1,674. d. $2,463.
$1,983.
Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $1.50 in 2009. If 4 apples were produced in 2002 and 5 in 2009, whereas 3 oranges were produced in 2002 and 4 in 2009, then real GDP (in 2002 prices) in 2009 was: Select one: a. $11. b. $5. c. $6.50. d. $9.50.
$6.50.
If GDP (measured in billions of current dollars) is $5,465 and the sum of consumption, investment, and government purchases is $5,496, while exports equal $673, imports are: Select one: a. -$673. b. -$704. c. $704. d. $673.
$704.
(Exhibit: Policies Influence Real Exchange Rate) Which of the panels illustrates the impact on the real exchange rate of an increase in household saving? Select one: https://i.imgur.com/khsRlkG.png a. (A) b. (B) c. (C) d. (D)
(A)
(Exhibit: Policies Influence Real Exchange Rate) Which of the panels illustrates the impact on the real exchange rate of contractionary fiscal policies at home? https://i.imgur.com/xo6vQ8x.png Select one: a. (A) b. (B) c. (C) d. (D) https://i.imgur.com/xo6vQ8x.png
(A)
(Exhibit: Policies Influence Real Exchange Rate) Which of the panels illustrates the impact on the real exchange rate of contractionary fiscal policies abroad? https://i.imgur.com/sPwifJS.png Select one: a. (A) b. (B) c. (C) d. (D)
(B)
(Exhibit: Policies Influence Real Exchange Rate) Which of the panels illustrates the impact on the real exchange rate of an increase in investment demand? https://i.imgur.com/Dw3kHEC.png Select one: a. (A) b. (B) c. (C) d. (D) https://i.imgur.com/Dw3kHEC.png
(C)
Exhibit: Policies Influence Real Exchange Rate) Which of the panels illustrates the impact on the real exchange rate of protectionist trade policies? https://i.imgur.com/v2BwGaC.png Select one: a. (A) b. (B) c. (C) d. (D)
(D)
Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $0.50 in 2009. If 10 apples and 5 oranges were purchased in 2002, and 5 apples and 10 oranges were purchased in 2009, what is the CPI for 2009? Use 2002 as the base year to construct the basket of goods. Select one: a. 75 b. 125 c. 100 d. 80
125
If 5 Swiss francs trade for $1, the U.S. price level equals $1 per good, and the Swiss price level equals 2 francs per good, then the real exchange rate between Swiss goods and U.S. goods is ______ Swiss good(s) per U.S. good. Select one: a. 0.5 b. 2.5 c. 5 d. 10
2.5
If 5 Swiss francs trade for $1, the U.S. price level equals $1 per good, and the Swiss price level equals 2 francs per good, then the real exchange rate between Swiss goods and U.S. goods is ______ Swiss good(s) per U.S. good. Select one: a. 0.5 b. 2.5 c. 5 d. 10
2.5
If purchasing-power parity held, if a Big Mac costs $2 in the United States, and if 10 Mexican pesos trade for $1 dollar, then a Big Mac in Cancun, Mexico, should cost: Select one: a. 2 pesos. b. 5 pesos. c. 10 pesos. d. 20 pesos.
20 pesos.
If total investment (measured in billions of current dollars) equals $741, business fixed investment is $524, and residential fixed investment is $222, then inventory investment is: Select one: a. -$5. b. -$15. c. $5. d. $15.
-$5.
Assume that the production function is Cobb-Douglas with parameter α = 0.3. If factors are paid their marginal products, capital and labor, respectively, receive the shares of income: Select one: a. 0.3 and 0.3. b. 0.7 and 0.7. c. 0.3 and 0.7. d. 0.7 and 0.3.
0.3 and 0.7.
If the consumption function is given by C = 150 + 0.85Y and Y increases by 1 unit, then C increases by: Select one: a. 0.15 units. b. 0.5 units. c. 0.85 units. d. 1 unit
0.85 units.
Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $1.50 in 2009. If 4 apples were produced in 2002 and 5 in 2009, whereas 3 oranges were produced in 2002 and 5 in 2009, then the GDP deflator in 2009, using a base year of 2002, was approximately: Select one: a. 2.0. b. 1.9. c. 1.7. d. 1.5.
1.7.
SCENARIO 4: General Motors builds $500 million worth of cars, but consumers only buy $470 million of them. As a result... Select one: a. Consumption increases by $470 b. Consumption decreases by $500 c. Consumption decreases by $470 d. Consumption increases by $500
Consumption increases by $470
SCENARIO 1: Debbie spends $300 to buy her husband dinner at the finest restaurant in Orange County. As a result... Select one: a. Government purchases increase by $300 b. Net exports increase by $300 c. Consumption rises by $300 d. Investment rises by $300
Consumption rises by $300
If a U.S. corporation sells a product in Canada and uses the proceeds to purchase a product manufactured in Canada, then U.S. net exports ______ and net capital outflows ______. Select one: a. increase; increase b. decrease; decrease c. do not change; do not change d. do not change; increase
Do not change; do not change
Worldwide, the trade balance must be: Select one: a. unsure. b. negative. c. positive. d. zero. e. dependent on the country.
zero
SCENARIO 1 (continued): Debbie spends $300 to buy her husband dinner at the finest restaurant in Orange County. As a result... Select one: a. GDP increases by $300 b. GDP is not affected c. GDP decreases by $300 d. GDP increases by more than $300
GDP increases by $300
SCENARIO 4 (continued): General Motors builds $500 million worth of cars, but consumers only buy $470 million of them. As a result... Select one: a. GDP increases by $500 million b. GDP increases by $470 million c. GDP is unaffected d. GDP increases by $440 million
GDP increases by $500 million
SCENARIO 3: Jane spends $800 on a computer to use in her editing business. She got last year's model on sale for a great price from a local manufacturer. As a result... Select one: a. GDP increases by $800 b. Investment increases by $800 c. GDP decreases by $800 d. GDP is not affected
GDP is not affected
SCENARIO 2 (continued): Sarah spends $1,200 on a new laptop to use in her publishing business. The laptop was built in China. As a result... Select one: a. GDP is unchanged b. GDP increases by $1,200 c. GDP decreases by $1,200 d. GDP increases by more than $1,200
GDP is unchanged
If the real exchange rate decreases, then net exports will _____. Select one: a. be positive. b. be negative. c. increase. d. decrease.
Increase.
SCENARIO 4 (continued): General Motors builds $500 million worth of cars, but consumers only buy $470 million of them. As a result... Select one: a. Inventory investment decreases by $30 million b. Inventory investment is not affected c. Inventory investment increases by $30 million d. Residential investment increases by $30 million
Inventory investment increases by $30 million
CENARIO 2: Sarah spends $1,200 on a new laptop to use in her publishing business. The laptop was built in China. As a result... Select one: a. Investment increases by $1,200 b. Investment is not affected c. Consumption increases by $1,200 d. Investment decreases by $1,200
Investment increases by $1,200
From the national income identity, if: Select one: a. NX < 0, Arrow sign (>) C + I + G < Y. b. .NX > 0, Arrow sign (>) C + I + G > Y. c. .NX < 0, Arrow sign (>) C + I + G > Y. d. .NX < 0, Arrow sign (>) C + I + G =Y. e. .NX > 0, Arrow sign (>) C + I + G <= Y.
NX < 0, Arrow sign (>) C + I + G > Y.
From the national income identity, we can derive the following relationship for the trade balance (net exports): Select one: a. NX = I. b. NX = I - S. c. NX = S - I. d. NX = Y - C - I. e. NX = C.
NX = S - I.
SCENARIO 2 (continued): Sarah spends $1,200 on a new laptop to use in her publishing business. The laptop was built in China. As a result... Select one: a. Net exports increase by $1,200 b. Exports decrease by $1,200 c. Net exports decrease by $1,200 d. Net exports are not affected
Net exports decrease by $1,200
(Exhibit: Saving, Investment, and the Interest Rate 1) The economy begins in equilibrium at Point E, representing the real interest rate, r1, at which saving, S1, equals desired investment, I1. What will be the new equilibrium combination of real interest rate, saving, and investment if the government cuts taxes, holding other factors constant? https://i.imgur.com/7khiWxY.png Select one: a. Point A b. Point B c. Point C d. Point D
Point A
(Exhibit: Saving, Investment, and the Interest Rate 2) The economy begins in equilibrium at Point E, representing the real interest rate, r1, at which saving, S1, equals desired investment, I1. What will be the new equilibrium combination of real interest rate, saving, and investment if there is a tax law change that makes investment projects less profitable and decreases the demand for investment goods (but does not change the amount of taxes collected in the economy)? https://i.imgur.com/CKfnE0C.png Select one: a. Point A b. Point B c. Point C d. Point D
Point A
(Exhibit: Saving, Investment, and the Interest Rate 1) The economy begins in equilibrium at Point E, representing the real interest rate, r1, at which saving, S1, equals desired investment, I1. What will be the new equilibrium combination of real interest rate, saving, and investment if the government cuts spending, holding other factors constant? https://i.imgur.com/TnvCmNg.pngSelect one: a. Point A b. Point B c. Point C d. Point D
Point B
(Exhibit: Saving, Investment, and the Interest Rate 2) The economy begins in equilibrium at Point E, representing the real interest rate, r1, at which saving, S1, equals desired investment, I1. What will be the new equilibrium combination of real interest rate, saving, and investment if there is a technological innovation that increases the demand for investment goods? https://i.imgur.com/hZ4fSkb.png Select one: a. Point A b. Point B c. Point C d. Point D
Point B
All of the following actions are investments in the sense of the term used by macroeconomists except: Select one: a. Sandra Santiago's buying 100 shares of IBM stock. b. John Smith's buying a newly constructed home. c. IBM's building a new factory. d. corner candy store's buying a new computer.
Sandra Santiago's buying 100 shares of IBM stock.
Which of the following would decrease the real exchange rate in a small open economy in the long run? Select one: a. a personal income tax cut b. a reduction in government spending c. a tariff on imports d. an increase in investment
a reduction in government spending
Exhibit: Saving and Investment in a Small Open EconomyReference: Ref 6-1(Exhibit: Saving and Investment in a Small Open Economy) https://i.imgur.com/gJqdevw.png In a small open economy, if the world interest rate is r3, then the economy has: Select one: a. a trade surplus. b. balanced trade. c. a trade deficit. d. positive capital outflows.
a trade deficit.
(Exhibit: Saving and Investment in a Small Open Economy) In a small open economy, if the world interest rate is r1, then the economy has: https://i.imgur.com/OtA7mic.png Select one: a. a trade surplus. b. balanced trade. c. a trade deficit. d. negative capital outflows.
a trade surplus.
Prior to 1975, the United States had: Select one: a. balanced trade. b. a trade deficit. c. a trade surplus. d. a balanced budget. e. a zero rate of inflation.
a trade surplus.
From the national income identity in the United States, if NX < 0, this must equal the: Select one: a. additional borrowing the United States does to finance the gap between investment and domestic savings. b. additional lending the United States does to finance the gap between investment and domestic savings. c. additional lending the United States does to earn a return on its excess savings. d. federal government's budget surplus. e. additional borrowing the U.S. federal government does to finance its budget deficit.
additional borrowing the United States does to finance the gap between investment and domestic savings.
The marginal product of labor is: Select one: a. output divided by labor input. b. additional output produced when one additional unit of labor is added. c. additional output produced when one additional unit of labor and one additional unit of capital are added. d. value of additional output when one dollar's worth of additional labor is added.
additional output produced when one additional unit of labor is added.
An increase in the trade surplus of a small open economy could be the result of: Select one: a. a domestic tax cut. b. an increase in government spending. c. an increase in the world interest rate. d. the implementation of an investment tax-credit provision.
an increase in the world interest rate.
Assume that a war breaks out abroad, and foreign investors choose to invest more in a large safe country, the United States. Then, the U.S. real interest rate: Select one: a. and net exports will both fall. b. will fall and net exports will rise. c. will rise and net exports will fall. d. and net exports will both rise.
and net exports will both fall.
If the number of dollars per yen rises, this is called a(n): Select one: a. appreciation of the dollar. b. appreciation of the yen. c. increase in the terms of trade. d. decrease in the terms of trade.
appreciation of the yen.
If the real exchange rate is high, foreign goods: Select one: a. and domestic goods are both relatively expensive. b. and domestic goods are both relatively cheap. c. are relatively expensive and domestic goods are relatively cheap. d. are relatively cheap and domestic goods are relatively expensive.
are relatively cheap and domestic goods are relatively expensive.
An increase in the trade deficit of a small open economy could be the result of: Select one: a. an increase in taxes. b. an increase in government spending. c. an increase in the world interest rate. d. the expiration of an investment tax-credit provision.
b. an increase in government spending.
In a small open economy, if domestic saving equals $50 billion and domestic investment equals $50 billion, then there is ______ and net capital outflow equals ______. Select one: a. a trade deficit; $100 billion b. balanced trade; $0 c. a trade surplus; $100 billion d. balanced trade; $100 billion
balanced trade; $0
According to the model developed in Chapter 3, when taxes decrease without a change in government spending: Select one: a. consumption and equilibrium investment both increase. b. consumption and equilibrium investment both decrease. c. consumption increases and equilibrium investment decreases. d. consumption decreases and equilibrium investment increases.
c. consumption increases and equilibrium investment decreases.
The two most important factors of production are: Select one: a. goods and services. b. labor and energy. c. capital and labor. d. saving and investment.
capital and labor.
The demand for output in a closed economy is the sum of: Select one: a. public saving and private saving. b. the quantity of capital and labor and production technology. c. consumption, investment, and government spending. d. government purchases and transfer payments minus tax receipts.
consumption, investment, and government spending.
An effective policy to reduce a trade deficit in a small open economy would be to: Select one: a. increase tariffs on imports. b. impose stricter quotas on imported goods. c. increase government spending. d. increase taxes.
d. increase taxes.
According to the model developed in Chapter 3, when taxes are increased but government spending is unchanged, interest rates: Select one: a. increase. b. are unchanged. c. decrease. d. can vary wildly.
decrease
An increase in the supply of capital will: Select one: a. increase the real rental price of capital. b. decrease the real rental price of capital. c. increase the productivity of capital. d. decrease the real interest rate.
decrease the real rental price of capital.
If a U.S. corporation purchases a product made in Europe and the European producer uses the proceeds to purchase a U.S. government bond, then U.S. net exports ______ and net capital outflows ______. Select one: a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease
decrease; decrease
If the consumption function is given by C = 150 + 0.85(Y - T) and T increases by 1 unit, then savings: Select one: a. decreases by 0.85 units. b. decreases by 0.15 units. c. increases by 0.15 units. d. increases by 0.85 units.
decreases by 0.15 units.
In a large but open economy, when a fiscal expansion takes place, the interest rate goes up and some investment is crowded out; the expansion also causes a trade: Select one: a. surplus and a fall in the real exchange rate. b. deficit and a rise in the real exchange rate. c. surplus and a rise in the real exchange rate. d. deficit and a fall in the real exchange rate.
deficit and a rise in the real exchange rate.
In a small open economy, if exports equal $5 billion and imports equal $7 billion, then there is a trade ______ and ______ net capital outflow. Select one: a. deficit; negative b. surplus; negative c. deficit; positive d. surplus; positive
deficit; negative
Private saving is: Select one: a. income minus consumption minus government spending. b. disposable income minus consumption. c. disposable income minus government spending. d. taxes minus government spending.
disposable income minus consumption.
A consumption function shows the relationship between consumption and: Select one: a. income. b. personal income. c. disposable income. d. taxes.
disposable income.
A "small" economy is one in which the: Select one: a. level of output is fixed. b. price level is fixed. c. domestic interest rate equals the world interest rate. d. domestic saving is less than domestic investment
domestic interest rate equals the world interest rate.
The investment function slopes ______ because there are ______ investment projects that are profitable as the interest rate decreases. Select one: a. upward; fewer b. upward; more c. downward; fewer d. downward; more
downward; more
According to the model developed in Chapter 3, when government spending increases without a change in taxes: Select one: a. consumption increases. b. consumption decreases. c. equilibrium investment increases. d. equilibrium investment decreases.
equilibrium investment decreases.
All of the following are measures of GDP except the total: Select one: a. income from all production in the economy. b. value of all final production. c. expenditures of all businesses in the economy. d. expenditures on all final goods and services produced.
expenditures of all businesses in the economy.
When the real exchange rate rises: Select one: a. exports will decrease but imports will be unaffected. b. imports will decrease but exports will be unaffected. c. exports will increase and imports will decrease. d. exports will decrease and imports will increase.
exports will decrease and imports will increase.
A production function is a technological relationship between: Select one: a. factor prices and the marginal product of factors. b. factors of production and factor prices. c. factors of production and the quantity of output produced. d. factor prices and the quantity of output produced.
factors of production and the quantity of output produced.
In a small open economy, if consumer confidence falls and consumers decide to save more, then the real exchange rate: Select one: a. rises and net exports fall. b. and net exports both rise. c. falls and net exports rise. d. and net exports both fall.
falls and net exports rise.
To avoid double counting in the computation of GDP, only the value of ______ goods are included. Select one: a. final b. investment c. used d. intermediate
final
In the circular flow diagram, firms receive revenue from the _____ market, which is used to purchase inputs in the _____ market. Select one: a. goods; financial b. factor; financial c. goods; factor d. factor; goods
goods; factor
If private saving equals private investment and there is a trade deficit, there must be a(n) ________; this is called ________. Select one: a. net outflow of savings; the J-curve b. government budget deficit; the twin deficits c. government budget surplus; balanced trade d. excess supply of private savings; a budget surplus e. excess supply of private savings; the investment deficit
government budget deficit; the twin deficits
Public saving is: Select one: a. income minus consumption minus government spending. b. disposable income minus consumption. c. disposable income minus government spending. d. government revenue minus government spending.
government revenue minus government spending.
Unlike the GDP deflator, the CPI includes the prices of: Select one: a. goods purchased by firms. b. imported goods. c. goods purchased by governments. d. exported goods.
imported goods.
If government purchases exceed taxes minus transfer payments, then the government budget is: Select one: a. balanced. b. in deficit. c. in surplus. d. endogenous.
in deficit.
If the real exchange rate depreciates from 1 Japanese good per U.S. good to 0.5 Japanese good per U.S. good, then U.S. exports ______ and U.S. imports ______. Select one: a. increase; increase b. decrease; decrease c. increase; decrease d. decrease; increase
increase; decrease
Starting from a trade balance, if the world interest rate falls, then, holding other factors constant, in a small open economy the amount of domestic investment will _____ and net exports will _____. Select one: a. increase; increase b. increase; decrease c. increase, not change d. decrease; increase
increase; decrease
In a small open economy, if the world interest rate falls, then domestic investment will _____ and the real exchange rate will _____, holding all else constant. Select one: a. decrease; decrease b. decrease; increase c. increase; decrease d. increase; increase
increase; increase
Use the model developed in Chapter 3 and assume that consumption does not depend on the interest rate. In this case, when there is a technological advance that leads to an increase in investment demand: Select one: a. investment increases and the interest rate rises. b. investment is unchanged and the interest rate rises. c. investment and the interest rate are both unchanged. d. investment increases and the interest rate falls.
investment is unchanged and the interest rate rises.
In a small open economy, policies that increase: Select one: a. investment tend to cause a trade surplus. b. investment tend to cause a trade deficit. c. saving do not affect the trade balance. d. saving tend to cause a trade deficit.
investment tend to cause a trade deficit.
If the production function describing an economy is Y = 100 K^(.25)L^(.75), then the share of output going to labor: Select one: a. is 25 percent. b. is 75 percent. c. depends on the quantities of labor and capital. d. depends on the state of technology.
is 75 percent.
If the United States is running persistent trade deficits now, it: Select one: a. must make loans to the rest of world. b. is expected to run trade surpluses at some point in the future. c. is expected to run trade surpluses now. d. must increase its money supply to buy imports. e. must run a government budget deficit.
is expected to run trade surpluses at some point in the future.
In China, total saving ________ investment; therefore, China ________. Select one: a. equals; imports more and invests abroad b. is less than; exports its excess production and invests abroad c. is greater than; imports more, because Chinese consumers would prefer to consume rather than save d. equals; exports its excess production and invests abroad e. is greater than; exports its excess production and invests abroad
is greater than; exports its excess production and invests abroad
The world interest rate: Select one: a. is equal to the domestic interest rate. b. makes domestic saving equal to domestic investment. c. is the interest rate charged on loans by the World Bank. d. is the interest rate prevailing in world financial markets.
is the interest rate prevailing in world financial markets.
When the demand for loanable funds exceeds the supply of loanable funds, households want to save ______ than firms want to invest and the interest rate ______. Select one: a. more; rises b. more; falls c. less; rises d. less; falls
less; rises
In equilibrium, total investment equals: Select one: a. private saving. b. public saving. c. national saving. d. household saving.
national saving.
If domestic saving is less than domestic investment, then net exports are ______ and net capital outflows are ______. Select one: a. positive; positive b. positive; negative c. negative; negative d. negative; positive
negative; negative
In a LARGE open economy, if an import quota is adopted, then: Select one: a. net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate rises. b. net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate falls. c. net exports rise and the real exchange rate rises. d. net exports rise and the real exchange rate falls.
net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate rises.
Protectionist policies implemented in a small open economy with a trade deficit have the effect of ______ the trade deficit and ______ the quantity of imports and exports. Select one: a. decreasing; decreasing b. not changing; decreasing c. decreasing; not changing d. not changing; not changing
not changing; decreasing
The nominal exchange rate between the U.S. dollar and the Japanese yen is the: Select one: a. number of yen you can get for lending one dollar in Japan for one year. b. number of yen you can get for one dollar. c. price of U.S. goods divided by the price of Japanese goods. d. price of Japanese goods divided by the price of U.S. goods.
number of yen you can get for one dollar.
An economy's factors of production and its production function determine the economy's: Select one: a. labor force participation rate. b. budget surplus or deficit. c. population growth rate. d. output of goods and services.
output of goods and services.
If domestic saving exceeds domestic investment, then net exports are ______ and net capital outflows are ______. Select one: a. positive; positive b. positive; negative c. negative; negative d. negative; positive
positive; positive
Consumption depends ______ on disposable income, and investment depends ______ on the real interest rate. Select one: a. positively; positively b. positively; negatively c. negatively; negatively d. negatively; positively
positively; negatively
The government raises lump-sum taxes on income by $100 billion, and the neoclassical economy adjusts so that output does not change. If the marginal propensity to consume is 0.6, national saving: Select one: a. rises by $100 billion. b. rises by $60 billion. c. falls by $60 billion. d. falls by $100 billion.
rises by $60 billion.
In a small open economy, starting from a position of balanced trade, if the government increases the income tax, this produces a tendency toward a trade ______ and ______ net capital outflow. Select one: a. deficit; negative b. surplus; positive c. deficit; positive d. surplus; negative
surplus; positive
Disposable personal income is defined as income after the payment of all: Select one: a. taxes. b. interest. c. loans. d. social insurance contributions.
taxes
A depreciation of the real exchange rate in a small open economy could be the result of: Select one: a. a domestic tax cut. b. an increase in government spending. c. a decrease in the world interest rate. d. the expiration of an investment tax-credit provision.
the expiration of an investment tax-credit provision.
The CPI is determined by computing: Select one: a. the price of a basket of goods and services that changes every year, relative to the same basket in a base year. b. an average of prices of all goods and services. c. the price of a fixed basket of goods and services, relative to the price of the same basket in a base year. d. nominal GDP relative to real GDP.
the price of a fixed basket of goods and services, relative to the price of the same basket in a base year.
The real wage will increase if: Select one: a. the supply of labor increases. b. the productivity of labor increases. c. the price of output increases. d. the supply of capital decreases.
the productivity of labor increases.
The difference between exports and imports is called: Select one: a. the trade balance. Correct b. net imports. c. the capital account. d. the statistical discrepancy. e. the production possibility.
the trade balance.
An "open" economy is one in which: Select one: a. the level of output is fixed. b. government spending exceeds revenues. c. the national interest rate equals the world interest rate. d. there is trade in goods and services with the rest of the world
there is trade in goods and services with the rest of the world
The real rental price of capital is the price per unit of capital measured in: Select one: a. dollars. b. units of output. c. units of labor. d. units of capital.
units of output.