Which of the following economic conditions cause export growth to be a basis for faster overall economic growth?
A) Diseconomies of scale in production for the domestic market
B) A larger-than- average service sector
C) A larger-than-average manufacturing sector
D) High and constant levels of productivity in export production
E) Economies of scale in production for the world market
E
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You using a Laspeyres (fixed-weight )price index to compare price changes over time, and the index is based on consumption bundles from 2005 when energy costs were lower and housing costs were higher. Your results are likely to:
A) Overstate changes in the cost of living because the weight assigned to energy is too small. B) Overstate changes in the cost of living because the weight assigned to energy is too large. C) Understate changes in the cost of living because the weight assigned to housing is too small. D) Understate changes in the cost of living because the weigh assigned to housing is too large.
Which of the following will result in an increase in the output of a nation?
a. A decrease in exports b. A decrease in investment spending c. A decrease in interest rates d. A decrease in consumption