Which of the following would decrease net exports in the United States?

A) A Mexican citizen purchases 100 shares of stock in IBM.
B) The U.S. government donates $25 million to Mexico to help victims of a hurricane in Mexico.
C) An American party planner purchases 350 piƱatas from Mexico.
D) The government of Mexico purchases 2,000 Dell laptop computers from the United States.


C

Economics

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What does monopolistic competition have in common with perfect competition?

A) a large number of firms and freedom of entry and exit B) a standardized product C) product differentiation D) the ability to earn an economic profit in the long run E) barriers to exit but no barriers to entry

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Money demand behavior may

A) change as a result of demographic trends or financial innovations such as electronic cash-transfer facilities. B) change only as a result of demographic trends. C) change only as a result of financial innovations such as electronic cash-transfer facilities. D) not change as a result of demographic trends or financial innovations such as electronic cash-transfer facilities. E) change as a result of demographic trends but not as a result of financial innovations such as electronic cash-transfer facilities.

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The purpose of the Temporary Assistance to Needy Families program is

A) to provide rebates of Social Security taxes to low-income workers. B) to provide cash assistance and supportive services to assist the family, helping them achieve economic self-sufficiency. C) to provide a minimum income for the aged, blind, and the disabled. D) to supplement Social Security for the elderly with medical problems.

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An increase in business taxes is likely to reduce aggregate demand because of a decrease in private investment.

a. true b. false

Economics