Economics Flashcards
1
Q
What does a price elasticity > 1 indicate?
A
Changes in quantity demanded is greater than change in price
2
Q
Does the nominal business cycle exist? T or F
A
False
3
Q
Mutual interdependence
A
The outcome of pricing in an oligopoly is dependent upon reactions of participants in the market
4
Q
Do imports increase or decrease the balance of trade?
A
Decrease
5
Q
National Income Formula
A
NI = GDP - Depreciation + Net income earned abroad - Indirect bus. taxes
6
Q
All of the following are components of the formula used to calculate gross domestic product except:
A
Household Income
7
Q
GDP Formula
A
GDP = C + I + G + Net Exports
8
Q
Which of the following theories does NOT affect the business cycle?
A
Nominal business cycle
