Suppose U.S. interest rates fall. This reduction in U.S. interest rates will cause which of the following to occur?
A) an outflow of capital from the United States
B) no change in foreign investment in the United States
C) an increase in the value (appreciation) of the U.S. dollar
D) an inflow of capital to the United States
A
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When calculating the compensation of employees part of GDP
A) Social Security contributions must be included. B) fringe benefits are not included. C) taxes withheld on earnings are not included. D) the value of vacation time must be included.
You review a salesman's income over a 5-year period. You note it fluctuates tremendously from year to year, yet his consumption of goods and services remains consistently at the same level, year after year
Does this mean that income is not a determinant of consumption, or could something else explain his behavior?
Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service.
Answer the following statement true (T) or false (F)
The price of an airline ticket from Denver to Washington, D.C. costs $600. A bus ticket costs $150. Traveling by plane takes 6 hours compared with 51 hours by bus. Other things constant, an individual would gain by choosing air travel if, and only if, his time were valued at more than
What will be an ideal response?