The relationship between the government deficit and the change in the monetary base is
A. deficit equals change in government debt outstanding plus change in monetary base.
B. deficit equals change in government debt held by the public plus change in monetary base.
C. deficit equals change in government debt outstanding minus change in monetary base.
D. deficit equals change in government debt held by the public minus change in monetary base.
Answer: B
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The first major international trade agreement following World War II was the North American Free Trade Agreement (NAFTA)
Indicate whether the statement is true or false
In the above figure, if the real wage is $10 per hour, a labor
A) shortage will occur and the real wage will rise. B) shortage will occur and the real wage will fall. C) surplus will occur and the real wage will rise. D) surplus will occur and the real wage will fall.
An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without b. people drive as safely with more airbags as without c. football players avoid 'spearing' with their heads even with safer helmets d. people fail to read the medicine warnings more often when self-medicating versus with a doctor's prescription
Because of their brand names, Kodak, IBM, Honda, Daimler-Chrysler, and other well-known firms are able to charge significantly higher prices for their products than their competitors without losing any business. Expenditures made by firms to create brand names:
a. are always inefficient. b. provide reliability to consumers. c. lead to monopolies. d. necessarily lead to deadweight losses. e. would not exist if information was less costly for firms to obtain than consumers.