Suppose that Year 1 is the base year. What is the growth rate of GDP?

Assuming that the exchange rate rises by 5 percent, hence, the dollar volume of exports rises by 5 percent, then foreign exchange earnings would

a. remain constant. b. increase by 5 percent. c. actually decrease by 5 percent. d. increase by 10 percent.

A firm is likely to be a natural monopoly:

A. when the demand for its product or service is inelastic. B. if it is producing an inferior good. C. if economies of scale are experienced over the full range of output. D. because government grants it an exclusive franchise.