If a government increases its budget deficit, then the real exchange rate
a. and domestic investment rise.
b. and domestic investment fall.
c. rises and domestic investment falls.
d. falls and domestic investment rises.
c
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Provide three rationales for government involvement in health care markets. Which is the most recent?
What will be an ideal response?
Jim is haggling with a car dealer over the sale price of a used car. Which of the following would determine the amount of surplus Jim extracts from the purchase?
a. Total difference between the buyer's and seller's valuations of the car b. The number of customers trying to buy that particular car c. The number of sellers trying to make Jim a sale d. All of the above
Suppose Gina gives up a job paying $30,000 a year so that she can start her own pizza business. She takes $100,000 from her savings account (which paid a 6 percent rate of interest) to pay for equipment, materials and labor, and after one year her total revenue is $70,000 . Gina's profit-related income is
a. $70,000 b. $40,000 c. $34,000 d. $30,000 e. $6,000
If information is more costly and less easily available, then usually this
A. makes markets more efficient. B. decreases profit opportunities. C. makes markets less efficient. D. decreases the opportunity cost of acquiring more information.