Nations that borrow from abroad to support current consumption
A) will always be better off in the future. B) may sacrifice future consumption.
C) will always sacrifice future consumption. D) will always sacrifice current consumption.
C
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Other things constant, which of the following would tend to increase the demand for Disney World vacations?
A) A rise in the price of Hawaiian vacations (a substitute for Disney World) B) A rise in income, if Disney World vacationing is a normal good C) A fall in the price of air travel (a complementary good) D) New information that Disney World will raise its prices once the summer season is over E) All of the above.
As a percentage of national income, the U.S. spends more money on health care than any other industrialized nation
a. True b. False Indicate whether the statement is true or false
The overriding reason why households and societies face many decisions is that
a. resources are scarce. b. goods and services are not scarce. c. incomes fluctuate with business cycles. d. people, by nature, tend to disagree.
Ally owns a shoe store. The market wage is $10 per hour, and the cost of capital is $2 per week for every $1000, of capital borrowed. Consider the isocost line associated with spending $8000, per week, and let the y-axis be the amount of capital borrowed in increments of $1000. Which of the following is not true?
A. If Ally employs 600 hours of work, she can borrow $1 million of capital. B. If Ally employs 400 hours of work, she can borrow $3 million of capital. C. The slope of the isocost line is ?5. D. If Ally borrows no capital, she can employ 800 hours of work. E. If Ally employs no workers, she can borrow $4 million of capital.