In the simple circular flow of income, whenever planned investment is equal to planned saving,
a. total output rises and prices fall.
b. prices and total output tend to be stable.
c. prices rise.
d. total output increases.
b. prices and total output tend to be stable.
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An external cost is a cost of producing a good or service that is
A) not paid by the producers. B) paid by the producers. C) paid by the government. D) paid by the consumer and the government.
Research estimates that the medical spending for obesity-related diseases was
a. About the same as for healthy individuals. b. Ironically, much less than for healthy individuals. c. about $86 billion. d. about 9.1% of total medical spending. e. both c and d.
The principal-agent problem arises because the agent's objectives differ from those of the principal
a. True b. False
Once a new technology spreads and is adopted by many countries:
A. the first country to use it may lose its comparative advantage. B. the first country to use it will lose its absolute advantage. C. other countries will perfect it, putting them at an absolute advantage. D. the country will have to have strict intellectual property rights protections in place.