If Europe and Japan experience rapid growth in their incomes, other things constant, this will cause
a. a decrease in the exports of the United States.
b. an increase in the exports of the United States.
c. a decrease in the national income of the United States.
d. a decrease in aggregate demand in the United States.
B
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An example of a market subject to adverse selection would be:
A. the used car market. B. the insurance market. C. the financial market. D. All of these statements are true.
The In the News article in the text titled "Fiscal Policy in the Great Depression" discusses fiscal spending and taxation. During the Great Depression, the federal government pursued a policy of fiscal restraint that led to
A. An increase in aggregate demand. B. An increase in taxes. C. A decrease in the structural deficit. D. An increase in the structural deficit.
Double taxation means that both
a. the profits of corporations and the dividends shareholders receive are taxed, which is not currently the case in the United States. b. the profits of corporations and the dividends shareholders receive are taxed, which is currently the case in the U.S. c. wage income and employee benefits are taxed, which is not currently the case in the United States. d. wage income and employee benefits are taxed, which is currently the case in the United States.
Which of the following statements is true for both Microsoft and a locally owned restaurant?
A. Both confront perfectly elastic demand for their products. B. Both are perfect competitors. C. Neither firm is able to influence the price of their products. D. Both seek to maximize profits.