Which of the following is true according to the case study on U.S. / China trade presented in the chapter?
A) China has relative abundance in capital.
B) China has relative abundance in skilled labor.
C) The United States has relative scarcity in unskilled labor.
D) The United States has relative scarcity in capital.
C
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Holding other factors constant, if a change in tax laws discourages people from saving more for retirement, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
A. increase; decrease B. decrease; increase C. decrease; decrease D. increase; increase
One organization in the United States today that is exempt from antitrust laws is
A) the automobile industry. B) professional baseball. C) the oil industry. D) the steel industry.
Which of the following statements is not true?
A. Transaction deposits make up less than 10 percent of banks sources of funds. B. The largest sources of funds for banks are non-transactions accounts. C. Borrowing is a larger source of funds for banks than transaction deposits. D. The largest source of funds for banks to lend comes from the owner's capital.
Air pollution generated by a steel mill is an example of
A. a negative production externality. B. the free-rider problem. C. a positive production externality. D. a public good.