Which of the following factors reduces the need for government involvement in the marketplace?
A. The need for public goods
B. Incomplete information
C. The incentive to rent-seek
D. The presence of externalities
Answer: C
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An American consumer buys a French luxury product in New York. In the U.S. balance of payments accounts, this transaction directly appears in
A) the official settlements account. B) the imports part of the current account. C) the net transfers part of the current account. D) the capital and financial account.
The basic classical model can account for the procyclical behavior of money if there
A) are real business cycles caused by productivity shocks. B) is reverse causation from future output to money. C) are rational expectations among the public. D) are propagation mechanisms in the economy.
The value of a network
A) is related to how many are in the network. B) is not related to how many are in the network. C) is related to its impact on diminishing marginal returns. D) none of these choices.
On a graph with consumption on the vertical axis and disposable income on the horizontal axis, the slope of the line is
a. greater than one. b. equal to one. c. less than one. d. undefined.