The wealth effect of a change in the price level refers to the fact that wealthier individuals tend to spend more on foreign goods
a. True
b. False
Indicate whether the statement is true or false
False
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Efforts to raise money for local charities illustrate which of the following?
a. Using social pressure to produce a public benefit b. Relying on society to develop positive externalities c. Creating nonexcludable but rivalrous resources d. Distributing private benefits throughout society
The objective of bank management is to
a. maximize stockholders' profits by making risky investments and giving loans to borrowers who will pay the highest interest rates. b. refuse to make risky loans and make loans only to the safest borrowers. c. invest in U.S. government securities and make loans only to established businesses. d. strike the appropriate balance between the attraction of bank profits and the need for bank safety.
If U.S. prices increase relative to the rest of the world, we would expect:
A. exports to decrease and net exports to increase. B. imports to increase and net exports to increase. C. imports to decrease and net exports to increase. D. exports to decrease and net exports to decrease.
Which factor of production earns profit?
A) land B) human capital C) money D) entrepreneurship