The effectiveness of expansionary fiscal policy is directly proportional to the level of _______ in the economy.
A. efficiency
B. inefficiency
C. inflation
D. employment
Ans: B. inefficiency
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As it relates to migration, self-selection is most likely to apply to:
A. Highly-skilled immigrants B. Low-skilled immigrants C. Highly-skilled domestic workers D. Low-skilled domestic workers
If net exports is negative, it must be the case that ________.
A. more goods are being exported than imported B. the value of goods, services, and resources exported is less than the value imported C. more goods are being imported than exported D. the value of goods, services, and resources imported is less than the value exported
Suppose good X is on the horizontal axis, good Y is on the vertical axis, and the slope of an individual's budget line is -2 . Which of the following is true? a. Good Y is twice as expensive as good X
b. The consumer gives up two units of good Y for each unit of good X she purchases. c. The opportunity cost of good X is one half of a unit of good Y. d. All of the above are correct.
The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad. B. stabilizing the exchange rate against external shocks. C. stabilizing the interest rate against foreign capital outflows. D. promoting long term economic growth.