Suppose a recession in Europe reduces U.S. net exports at every price level. Which of the following would you expect to occur in the U.S. as a result of this change?
a. In the short run, unemployment will increase and inflation will fall.
b. In the short run, unemployment will increase and inflation will rise.
c. In the short run, unemployment will decrease and inflation will rise.
d. In the short run, unemployment will decrease and inflation will fall.
a
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The Clayton Act allowed board members of one corporation to sit on the board of a competing firm as long as inside information was not transmitted
Indicate whether the statement is true or false
Vertical equity refers to the notion that equally situated individuals should be taxed equally
a. True b. False Indicate whether the statement is true or false
Trade raises the economic well-being of a nation in the sense that
a. the gains of the winners exceed the losses of the losers. b. everyone in an economy gains from trade. c. since countries can choose what products to trade, they will pick those products that are most beneficial to society. d. the nation joins the international community when it begins to engage in trade.
Citizens of Tinytown are considering building a new park. If each voter in Tinytown has a reservation price that is less than the total cost of the park, then:
A. some sort of collective action by voters will be necessary to fund the park. B. a private firm will have an incentive to build the park. C. the park will never be built. D. the benefit of the park is less than the cost of the park, so the park should not be built.