What is the Ricardian equivalence proposition?
a. Governments change their spending/savings to offset private households spending/saving.
b. Governments and private households change their spending and saving decisions in the same direction.
c. Private households change their spending/saving to offset government spending/saving.
d. Private households do not take government spending/saving into consideration when making decisions.
c. Private households change their spending/saving to offset government spending/saving.
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A common misconception about supply is that
a. supply depends on many other variables. b. price is a major determinant of quantity. c. it is a fixed amount. d. quantity cannot be determined in advance. e. All of the above are correct.
Which of the following is not true of venture capitalists?
A. They incur risk. B. They may experience losses. C. They share in any profits that may result. D. They have the same financial liability as corporate stockholders.
At an exchange rate of $1 = €1 in Figure 36.1, there is
A. Equilibrium in the foreign exchange market. B. A shortage of euros. C. a shortage of dollars. D. A surplus of dollars.
Refer to the information provided in Table 33.1 below to answer the question(s) that follow. Table 33.1
Refer to Table 33.1. Mexico has
A. an absolute advantage and a comparative advantage in banana production. B. a comparative advantage but not an absolute advantage in banana production. C. a comparative advantage but not an absolute advantage in orange production. D. an absolute advantage and a comparative advantage in orange production.