One way to sidestep the debate over whether the government should increase spending during economic downturns is to:
A. cut government spending so the government has no ability to spend money.
B. return to the gold standard so that the value of the U.S. dollar remains strong.
C. identify projects that nearly everyone can agree the government should fund.
D. raise taxes so that the government has the money it needs for additional spending.
Answer: C
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Understanding the impact of carbon taxes on the energy usage of individual households and firms is studied under:
A) microeconomics. B) macroeconomics. C) fiscal economics. D) financial economics.
Which of the following statements is false?
A. The list of stocks that are included in the Dow Jones Industrial Average changes from time to time, and is determined by the editors of the Wall Street Journal. B. The Dow Jones Industrial Average first appeared on the scene in 1896. C. When the Dow Jones Industrial Average was first computed, prudent investors bought bonds, not stocks. D. The Dow Jones Industrial Average is computed by summing the prices of the thirty stocks included in the average and dividing by 30.
Which of the following statements captures the meaning of transitivity of preferences?
a. If A is preferred to B, then B is less preferred than A. b. If A is preferred to B, and B is preferred to C, then A is preferred to C. c. If A is preferred to B and B is preferred to C, then the preference for A over B is stronger than the preference for B over C. d. If A is preferred to C, then there exists B such that A is preferred to B and C is preferred to A.
Refer to the data below. Which of the following statements about the two nations is correct based on the principle of comparative advantage?
Answer the following question based on the data provided in the tables below for two hypothetical nations, Wat and Xat. The nations have the production possibilities for rice and corn given in the following table:
A. Xat should specialize in the production of corn
B. Wat should specialize in the production of rice
C. Xat has a comparative advantage in the production of rice
D. Xat has a comparative advantage in the production of corn