By Itself, an Increase in Exports

question 238

Multiple Choice

By itself, an increase in exports

• A) decreases GDP.
• B) can either increase or decrease GDP, depending on whether the exports are durable or nondurable.
• C) increases GDP.
• D) means imports decrease by the same amount.

Recognize the implications of patents and monopolistic barriers to entry on firm behavior and market structure.

Assess the role of natural monopoly attitudes towards pricing policies and their impact on economic profits.

Understand the basic principles of how monopolies determine their profit-maximizing level of output.

Identify the relationship between marginal cost (MC) and marginal revenue (MR) in maximizing monopolist’s profit.

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Definitions:

Analogies

A form of reasoning or argumentation in which similarities between two different things are drawn to explain or clarify a concept.

Refute Arguments

The process of logically disproving or countering the claims or premises of an argument.

Argument by Analogy

A form of reasoning in which an argument is made by comparing two similar cases and inferring that what is true for one case is also true for the other.

Alike in Respects

Similar or comparable in certain ways or aspects.