What is the main argument which explains why the data do not show a positive relation between the deficit producing tax cuts in the early eighties savings rates?
A) People will increase savings to "finance" debt repayment by future generations.
B) People will increase consumption to "finance" debt repayment by future generations.
C) Savings is determined by uncertain events, the timing of future illnesses and death.
D) Savings is determined by certain events, the timing of future illnesses.
C
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Which of the following is NOT an element of a seller's decision-making process in a perfectly competitive market?
A) The relationship between the inputs and outputs B) The cost of the inputs C) The price of the output D) The number of buyers
When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good,
a. producer surplus increases and total surplus increases in the market for that good. b. producer surplus increases and total surplus decreases in the market for that good. c. producer surplus decreases and total surplus increases in the market for that good. d. producer surplus decreases and total surplus decreases in the market for that good.
A consequence of adverse selection for the insurance market is that:
A. risk-seeking individuals typically pay higher premiums than risk-averse individuals. B. everyone ends up paying lower premiums. C. everyone ends up paying higher premiums. D. risk-averse individuals typically pay higher premiums than risk-seekers.
Price ceilings are intended to address the problem of
A. Business bankruptcies. B. Inefficiency in production. C. Inequity in the distribution of goods and services. D. Shortages.