A college education is a(n)
A. investment in human capital.
B. form of innovation.
C. public good.
D. mediated settlement.
Answer: A
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Suppose the intersection of the IS and LM curves is to the right of the FE line. What would most likely eliminate a disequilibrium among the asset, labor, and goods markets?
A) A rise in the price level, shifting the LM curve up and to the left. B) A fall in the price level, shifting the LM curve down and to the right. C) A rise in the price level, shifting the IS curve up and to the right. D) A fall in the price level, shifting the IS curve down and to the left.
If the price of automobiles were to increase substantially, the demand curve for automobiles would most likely
A) shift rightward. B) shift leftward. C) remain unchanged. D) become steeper.
Which of the following would help reduce our trade deficit?
A. Reduce our trade deficit with China B. Lower our dependence on oil imports C. Reduce our consumption habits D. All of the choices would help reduce our trade deficit.
In the absence of trade barriers, patterns of trade are driven by comparative advantage.
a. true b. false