LoJacks convey ________ to third parties.
A. negative externalities
B. economies of scale
C. public goods
D. positive externalities
Answer: D
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Two countries that specialize their production along the lines of comparative advantage and then trade with each other will be able to
A. both produce and consume more. B. produce less and consume more. C. produce more and consume less. D. both produce and consume less.
The multiplier-accelerator model was developed by
A) Paul Samuelson. B) classical economists. C) Walter Heller. D) John Maynard Keynes.
When manufacturing a car, parts must be soldered together. This work can be done by labor or by a robot (capital). More robots will be hired when the price of labor increases. This is known as
A) the effect of changing labor productivity. B) marginal revenue product. C) the complementary effect. D) the substitution effect.
China began pegging its currency, the yuan, to the U.S. dollar in 1994. Because the yuan has been ________ at the pegged exchange rate, the Chinese government ________ its reserves of U.S. dollars as the government purchased more ________ to maintain the pegged exchange rate.
A) undervalued; increased; dollars B) undervalued; decreased; yuan C) overvalued; decreased; yuan D) overvalued; increased; yuan