Assuming a simultaneous reduction in income taxes and transfer payments of $50 billion, then aggregate disposable income will
a. be higher than before.
b. be lower than before.
c. remain constant.
d. None of the above
C
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If Europe and the United States were the only two regions in the world, then U.S. residents might desire to buy euros for all except one of the following reasons. Which is the exception?
a. to invest in Europe b. to buy European goods c. to improve the U.S. balance of payments d. to make loans in Europe e. to buy European stocks
Trade between nations A and B:
a. leaves the production possibilities of nation A unchanged. b. leaves the production possibilities of nation B unchanged. c. increases the consumption possibilities of both nations. d. All of these are true.
Which of the following companies was part of the original Dow Jones Industrial Average?
A) Chicago Gas Company B) National Lead Company C) General Motors Corp. D) AT&T Inc. E) a and b
American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Which country has an absolute advantage in producing cars? In producing grain?
a. U.S in cars; Japan in grain b. Japan in cars; U.S in grain c. U.S in cars; U.S in grain d. Neither in cars; U.S in grain