The following statements about the business cycle are correct except ______
A. it is a regular predictable cycle in real GDP around potential GDP
B. from the peak to the trough, the economy is in a recession
C. from the trough to the peak, the economy is in an expansion
D. it is a periodic movement in economic activity including employment
A The business cycle fluctuations around potential GDP are ir-regular and difficult to predict.
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Physical capital differs from raw materials in the sense that raw materials
a. have a longer useful life in production b. are considered human capital c. cannot be used to produce goods and services d. are used up in production e. are not a resource used in production
Which of the following correctly identifies an impact of the opening of trade for an industry with external economies?
A. Consumers of the product in the importing country lose consumer surplus. B. Producers of the product in the exporting country lose producer surplus. C. Producers of the product in the importing countries lose producer surplus. D. Consumers of the product in the exporting country lose consumer surplus.