Macroeconomics is the study of
A) how households make choices.
B) how firms make choices.
C) how households and firms make choices.
D) the economy as a whole.
Answer: D
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The winners from a Japanese tariff on imported cars are I. Japanese car producers. II. Japanese car consumers. III. the Japanese government
A) only I and III B) only I C) only II D) I, II, and III
The Heckscher-Ohlin model basically states that countries will specialize and trade those goods in which they have comparative advantage
Indicate whether the statement is true or false
Which of the following is an example of asymmetric information?
a. A student adopting unfair means to complete his/her assignment. b. A commodity trader buying goods at a low price and selling them off at a high price. c. A builder selling houses built on property that is zoned for industrial use. d. A buyer paying a pre-contracted price which is lower than the current market price.
A good way to start every Three-Sector-Model analysis is to:
a. Describe what is happening in the foreign exchange market and then proceed to explain what happens in the other two markets simultaneously. b. Identify the economic effects that result from an economic change and then work your way backward to identify the most important part of the analysis, which is the economic shock that started it all. c. Analyze the chain reaction of economic interactions. d. Gather basic information about the three markets and describe qualitatively the economic setting in each market.