Keynes believed that the government should increase spending and reduce taxes during an economic downturn because ________.
A. he agreed with the classical macroeconomic theorists
B. he was only focused on the long-run impacts of government policy
C. doing so would shorten the duration of the downturn
D. otherwise the economy would never recover
Answer: C
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Patterns of interregional trade are primarily determined by ________ rather than ________ because factors of production are generally ________
A) external economies; natural resources; mobile B) internal economies; external economies; mobile C) external economies; population; immobile D) internal economies; population; immobile E) population; external economies; immobile
The difference in present value between a perpetuity that promised $1 per year starting today and one that promised $1 per year starting next year is
a. 0. b. $1. c. $1/(1 + r). d. $r/(1 + r).
If the United States produces only corn and Mexico produces only oil, the price of oil, in terms of bushels of corn,
a. can be no higher than the opportunity cost of oil in the United States b. must be higher than the opportunity cost of oil in the United States c. can be no higher than the opportunity cost of corn in the United States d. can be no lower than the opportunity cost of oil in Mexico e. must be higher than the opportunity cost of oil in Mexico
______ is responsible for over one-half of the gap in life expectancy between the U.S. and Canada.
a. Obesity b. Drug abuse c. Poor diet d. Alcohol consumption e. Smoking