Generally speaking, a country whose currency depreciates will experience, as a result,
A. Inflationary pressure because the prices of imports rise.
B. Falling interest rates from a capital outflow.
C. Increasing unemployment in export sectors.
D. Reduced aggregate demand.
Answer: A
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When the price of a good falls, consumers buy a larger quantity because of the ________ effect and the ________ effect
A) normal; inferior B) substitution; income C) substitute; complement D) supply; demand
In economics, which of the following is considered as financial capital?
a. Offices and warehouses b. Stocks and bonds c. Machinery d. Factories e. Equipment
Command and control regulations do which of the following?
a. Provide incentives for firms to invent new technology to clean up pollution. b. Dictate what firms can produced and how much of a good they can produce. c. Dictate the amount of pollution firms allowed to production and/or the type of technology that must be used by the firm. d. Provide greater flexibility for each firm to lower the pollution it creates in its own way.
Government can overcome the free rider problem by collecting taxes and using the funds to provide individuals with nonexcludable public goods that they want to buy but the market cannot provide
Indicate whether the statement is true or false