Bankruptcy laws provide proper incentives by
A. completely absolving the person in debt from responsibility for it.
B. making it a moral failing
C. giving the person in debt a reason to work hard because they don't have to pay it all off.
D. giving the person in debt a reason to work hard to pay it all off.
Answer: C
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The trends displayed in the table can best be explained by
A) service industries have increased as a proportion of the economy and they tend to have higher nominal wage rates. B) the inflation rate has been rising over the time period. C) the real wage rate has increased at a rate about equal to the inflation rate. D) the nominal wage rate has increased at a rate about equal to the inflation rate. E) None of the above can explain the trends in the figure.
According to the graph shown, if this economy were to open to trade, consumers would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. enjoy a net gain to surplus of DEFG.
B. suffer a net loss to surplus of DEFG.
C. suffer a transfer of surplus to the producer of DEFG.
D. experience deadweight loss of FG.
If the dollars per peso exchange rate fell,
a. few firms would want to relocate to Mexico b. the demand for pesos would fall c. more Americans would travel to Mexico d. Americans would buy fewer Mexican goods e. the demand for pesos curve would shift inward
If Country A and Country B have the same total output, then the standard of living in these two countries can be different depending on:
A. population size. B. their respective inflation rates. C. their respective political systems. D. their relative geographic size.