In an Open Economy,Y = C + I + G

question 19

Multiple Choice

In an open economy,Y = C + I + G + NX.From this we may infer that ________.

• A)output is greater in an open economy than in a closed economy
• B)the condition for goods market equilibrium is that S = I + G + NX
• C)net exports can be zero only if the domestic real interest rate is equal to the world real interest rate
• D)if saving is greater than zero,NX cannot be zero
• E)none of the above

Understand the concept of allocative and productive efficiency in economic production.

Identify the characteristics and outcomes of different industry structures such as constant-cost, increasing-cost, and decreasing-cost industries.

Recognize the conditions under which economic profits are realized and how they influence firm behavior and market entry or exit.

Understand the impact of supply and demand changes on market equilibrium prices and quantities.

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Definitions:

Parts

Components or elements that make up a larger machine, device, or product.

Works

Refers to the output or creations produced by effort, skill, or labor, including artistic, engineering, and literary compositions.

IS Strategic Plan

An Information Systems Strategic Plan outlines an organization's technology-related objectives and the strategies to achieve them.

IS Operational Plan

Consists of a clear set of projects that the IS department and the functional area managers will execute in support of the IT strategic plan.