Suppose the economy is at a full-employment GDP of $1 trillion and the tax revenue received by the federal government is always one-fifth of GDP. If planned government expenditure is $300 billion, the structural

Assume that there are two types of perfectly competitive firms whose cost of production differ. An increase in input prices will lead to an exodus of high cost firms before low cost ones

Indicate whether the statement is true or false

The ratio (in physical units) at which two countries trade goods is known as the

a. opportunity cost b. marginal social cost c. price to earnings ratio d. comparative advantage ratio e. terms of trade