Which of the following is an example in which "the big tradeoff" can occur?
A) The government redistributes income from the rich to the poor.
B) Ford increases the price of a pickup truck.
C) A basketball player signs a $5 million contract.
D) A college lowers tuition.
E) The price of personal computers falls year after year.
A
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Which of the following classifications is correct?
A. City streets are consumption goods because they wear out with use. B. Stocks are capital goods because when people buy and sell them they make a profit. C. The coffee maker in the coffee shop at an airport is a consumption good because people buy the coffee it produces. D. White House security is a government service because it is paid for by the government..
Capital inflows in the balance of payments accounts include
a. purchases of financial assets by U.S. residents. b. direct investments in foreign countries. c. indirect investments in foreign countries. d. purchases of U.S. government bonds by foreigners.
A common contractual precommitment strategy is ________.
A) a meet-or-release clause B) price visibility C) a most-favored-customer clause D) a meet-the-competition clause
If a currency depreciates, a country's net exports
a. fall and AD increases. b. rise and AD increases. c. fall and AD decreases. d. rise and AD decreases.