Cash may be preferred to food stamps because additional cash
A) rotates the budget constraint.
B) shifts out the budget constraint at every point.
C) provides a smaller opportunity set.
D) allows the purchase of more food.
B
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Motorcycle helmet laws have been controversial in some states. Riders prefer the feel of the wind on their faces. Others, however, point out that riders without helmets are more likely to suffer severe injury and run up hospital bills at public expense. Which of the following would most likely reduce the incidence of high bills for helmetless riders?
a. raise insurance rates for helmetless riders b. lower insurance rates for helmetless riders c. publish information on injury rates for helmetless riders d. subsidize hospitals
The country of Northland produced $1,000 billion of output in one year. The population of Northland was 50 million, of whom 30 million were employed. What was average labor productivity in Northland?
A. $20,000 B. $33,333 C. $33 D. $20
There is a flexible exchange rate system and only two countries in the world, the United States and Mexico. If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that
A) the dollar will appreciate and the peso will depreciate. B) both the dollar and the peso will appreciate, although the peso will appreciate before the dollar appreciates. C) the dollar will depreciate and the peso will appreciate. D) both the dollar and the peso will depreciate, although the peso will depreciate before the dollar depreciates. E) There is not enough information to answer the question.
.The law of comparative advantage implies that a nation, individual, or region should trade for those economic goods for which it
What will be an ideal response?