Means-tested government benefits base benefits on
a. a household's wealth and are an incentive to save.
b. a household's wealth and are a disincentive to save.
c. the current interest rate and are an incentive to save.
d. the current interest rate and are a disincentive to save.
b
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The economic role of the legal system might best be described as
A) promoting the productive efficiency of competitive markets. B) identifying and producing public goods. C) establishing the "rules of the game" and acting as a referee when disputes arise among market participants. D) identifying and producing merit goods.
Holding other things constant, if the US dollar depreciates, it makes the US exports
a. Less attractive to foreigners b. More attractive to foreigners c. Neither more nor less attractive to foreigners d. None of the above
All else being equal, an increase in government spending would shift the ______ line to the ______, causing interest rates to _______ and the trade balance to _______.
A) LM; right; fall; fall B) IS; right; rise; rise C) LM; left; rise; rise D) IS; right; fall; fall
Which of the following is a common long-run response for a firm that is making a profit in the short run?
a. It will invest more resources in other firms. b. It will cut back the firm’s resources. c. It will invest more resources in the profitable process. d. It will keep allocation of the firm’s resources the same.