E2 Question 20What is a nation doing when it decides to choose a possibility A on its PPF producing nine million cars and one million tanks instead of possibility B onthe curve producing 6 million cars and two million tanks? Hint: no need for a diagram to answer.O A. making a rational decisionOB. responding to the peace timeO C. it has many barriers to producing tanksO D. trading offQuestion 21Which of the following statements best describes how supply and demand functions?O A. Supply and demand enables the establishment of a price and quantityOB. Supply and demand is a market place.O C. Supply and demand is the intersection of supply and demand curvesO D. They don't reallyQuestion 22Which of the following is excluded in this year s GDP?O a. A $2 billion increase in business inventoriesO b. The purchase of 100 shares of Google common stock.O c. The publication and sale of a new college textbook.O d. Income of a dentist from the dental services provided. Question 18We make rational choices by comparing what?O A. a tradeoffOB. costs and benefitsO C. our limited resourceO D. None of the above.Question 19What are Net exports? Why U.S. exports and imports each affects domestic production?O a. A country s exports of goods and services less its imports of goods and services are Net exports. They affect domestic production because imports are subtractedfrom U.S. GDP and exports are added.O b. A country s exports of goods less its imports of services are Net exports. They affect domestic production because exports and imports are subtracted from U.S.GDP.O c. A country s exports of goods plus its imports of services are Net exports. They affect domestic production because imports are added to U.S. GDP and exports aresubtracted.O d. A country s exports of goods and services plus its imports of goods and services are Net exports. They affect domestic production because exports and imports areadded to U.S. GDP.

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What is a nation doing when it decides to choose a possibility A on its PPF producing nine million cars and one million tanks instead of possibility B on the curve producing 6 million cars and two million tanks? Hint: no need for a diagram to answer. O A. making a rational decision O B. responding to the peace time O C. it has many barriers to producing tanks O D. trading off

What is a nation doing when it decides to choose a possibility A on its PPF producing nine million cars and one million tanks instead of possibility B on the curve producing 6 million cars and two million tanks? Hint: no need for a diagram to answer. O A. making a rational decision O B. responding to the peace time O C. it has many barriers to producing tanks O D. trading off

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 6SCQ: Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram...

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

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In its recent report, The Conference Boards Global Economic Outlook 2015, updated November 2014 (http://www.conference-board.org/data/ globaloutlook.cfm), projects Chinas growth between 2015 and 2019 to be about 5.5%. International Business Times (http//www.ibtimes.com/us-exports-china-have rown-294-over-past-decade- 1338693) reports that China is the United States third largest export market, with exports to China growing 294 over the last ten years. Explain what impact China has on the U.S. economy.
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