Which of the following is a way in which governments can directly promote savings and investment?
A. Governments can limit foreign competition by imposing tariffs and quotas on trade
B. Governments can expand primary and secondary schools
C. Governments can create tax incentives for both businesses and individuals
D. Governments can promote vaccinations for children and improve access to clean water
Answer: C. Governments can create tax incentives for both businesses and individuals
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Refer to the scenario above. Which of the following statements is true about the model?
A) The model is not based on any assumption. B) The predictions of the model will hold for every individual. C) The model describes the economic payoff of more education. D) The model can be applied for maximum 10 years of additional education.
When the exchange rate for the Mexican peso changes from 9 pesos to the U.S. dollar to 10 pesos to the U.S. dollar, then the Mexican peso has ________ and the U.S. dollar has ________
A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated
Studies in the 1980s and early 1990s showed that, in general, greater central bank independence
A) was associated with lower average inflation. B) was associated with lower average inflation and higher average real GDP growth. C) was associated with lower average inflation and higher unemployment. D) was associated with higher average inflation and higher average real GDP growth
In country A the opportunity cost of 1 paper clip is:
If Countries A and B produce only either rubber bands or paper clips, their maximum outputs are shown in the production possibilities schedules below:
A. 2 rubber bands
B. 1 rubber band
C. 1/2 rubber band
D. 1/4 rubber band