Questions from Macroeconomics

Q: Most countries, including the United States, import substantial amounts of

Most countries, including the United States, import substantial amounts of goods and services from other countries. Yet the chapter says that a nation can enjoy a high standard of living only if it ca...

Q: What does the level of a nation’s GDP measure? What does

What does the level of a nation’s GDP measure? What does the growth rate of GDP measure? Would you rather live in a nation with a high level of GDP and a low growth rate or in a nation with a low leve...

Q: What has been the approximate long-run growth rate of real

What has been the approximate long-run growth rate of real GDP per person in the United States? Name a country that has had faster growth and a country that has had slower growth.

Q: Economics is best defined as the study of a. how

Economics is best defined as the study of a. how society manages its scarce resources. b. how to run a business most profitably. c. how to predict inflation, unemployment, and stock prices. d. how t...

Q: You are trying to decide whether to take a vacation. Most

You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are measured in dollars, but the benefits of the vacation are psychological....

Q: What items would you include to figure out the opportunity cost of

What items would you include to figure out the opportunity cost of a vacation to Disney World?

Q: In what ways is economics a science?

In what ways is economics a science?

Q: Why is a country better off not isolating itself from all other

Why is a country better off not isolating itself from all other countries? Why do we have markets, and according to economists, what roles should government play in them?

Q: The circular-flow diagram illustrates that, in markets for the

The circular-flow diagram illustrates that, in markets for the factors of production, a. households are sellers, and firms are buyers. b. households are buyers, and firms are sellers. c. households an...

Q: What components of GDP (if any) would each of the

What components of GDP (if any) would each of the following transactions affect? Explain. a. Uncle Henry buys a new refrigerator from a domestic manufacturer. b. Aunt Jane buys a new house from a loc...