In the figure above, households
A) receive transfers directly from governments.
B) buy goods and services from governments in goods markets.
C) receive transfers from governments through factor markets.
D) sell factors of production to governments.
E) pay taxes to governments through factor markets.
A
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Consider two countries—A and B. Both the countries are identical except for the fact that institutions are extractive in country A and institutions are inclusive in country B
Given this information, which of the following statements will be true? A) Country A will be characterized by higher output and larger number of entrepreneurs than country B. B) Country A will be characterized by lower output but larger number of entrepreneurs than country B. C) Country A will be characterized by lower output and smaller number of entrepreneurs than country B. D) Country A will be characterized by higher output but lower number of entrepreneurs than country B.
RBC theory leads to ________ government macro-stabilization policy, due to the theory's assumption of ________
A) a rationale for, slow wage and price adjustment B) a rationale for, continuous market-clearing C) a rejection of, slow wage and price adjustment D) a rejection of, continuous market-clearing
Resources are costly because they have alternative uses
a. True b. False Indicate whether the statement is true or false
The demand curve for foreign exchange is
a. downward sloping. b. upward sloping. c. horizontal because no individual country can influence the price of foreign exchange. d. dependent on the supply of foreign exchange.