If the local slaughterhouse gives off an unpleasant stench, then the equilibrium quantity of meat will be ________ the quantity that maximizes total economic surplus.
A. lower than
B. higher than
C. equal to
D. more equitable
Answer: B
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What is the relationship among the current account, the financial account, and the balance of payments?
What will be an ideal response?
All inferior goods have upward-sloping demand curves
a. True b. False Indicate whether the statement is true or false
A rise in the budget deficit
a. shifts both the supply of loanable funds in the market for loanable funds and the supply of dollars in the market for foreign-currency exchange right. b. shifts both the supply of loanable funds in the market for loanable funds and the supply of dollars in the market for foreign-currency exchange left. c. shifts both the demand for loanable funds in the market for loanable funds and the demand for dollars in the market for foreign-currency exchange right. d. shifts both the demand for loanable funds in the market for loanable funds and the demand for dollars in the market for foreign-currency exchange left.
To raise economic development, developing countries should
A) focus on producing service goods. B) produce goods that are capital intensive and not labor intensive. C) not focus on economic growth. D) focus on their comparative advantage.