Chapters 1 (Questions) 1. The ratio of a country\'s exports to its total output
ID: 1142128 • Letter: C
Question
Chapters 1 (Questions) 1. The ratio of a country's exports to its total output (GNP or GDP) A) is known as the index of openness. B) provides a rough measure of the importance of international trade to that economy C) if calculated for the United States would be quite low. D) All of the above. 2. The difference between a country's Gross National Product (GNP) and its Gross Domestic product (GDP) is that A) GNP refers to production within the nation while GDP refers to production by domestic factors no matter where they are located. B) GNP is always bigger than GDP C) GDP refers to production within the nation while GNP refers to production by domestic factors no matter where they are located. D) All of the above are true. Chapter 2 (Questions) Answer the question(s) below based on the following diagranm. 500 1000 1. Refer to the above figure, the relative price of S to T (P/Pr) is A) 500 B) 1/2 C) 1000 D) 2 2. If the relative price of T were to increase, then the price line would A) shift out in a parallel fashion B) shift in a parallel fashion C) become steeper D) become flatterExplanation / Answer
Chapter 1:
1.
D
Openness to trade value, shows the importance of the international trade. though, its value comes low as far as the USA is concerned.
2.
C
GDP is about production in its own geographical area, but GNP is a broad measure that also considers the production of domestic factors that is done outside the country.
Chapter 2.
1.
B
2.
D
The less amount of T will be purchased, making the line to be flatter.