According to the textbook, when a foreign government provides aid to a poor nation, it
A) interferes in the domestic affairs of the poor nation.
B) behaves in the interest of the poor nation.
C) pursues the global interest.
D) does all of the above.
E) does none of the above.
A
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Compared to a firm under perfect competition, a monopolist:
A) charges less and produces less. B) charges less and produces more. C) charges more and produces less. D) charges more and produces more.
Rational ignorance says that voters will
A) understand the technology before voting on defense. B) vote on issues without having complete information. C) gather information on issues that are not important. D) not vote on issues that they do not understand.
Until the year 2000, the Humphrey-Hawkins Act directed the Fed to pursue all of the following, except
A) maximum employment. B) price stability. C) high economic growth. D) moderate long-term interest rates.
Compare two economies A and B that start out with identical production possibilities curves. Economy A chooses an efficient point with 6 consumption goods and 3 capital goods, while economy B also chooses an efficient point, but with 4 consumption goods and 5 capital goods. In the future we can predict:
a. economy A will operate inefficiently. b. economy B will operate inefficiently. c. economy A and economy B will grow equally fast. d. economy A will grow faster than economy B. e. economy B will grow faster than economy A.