When people "vote with their feet" they _____
a. move to the governmental jurisdiction with the lowest taxes
b. move to the governmental jurisdiction that have the bundle of government goods and services closest to their preferred level
c. move to the governmental jurisdiction with the best schools
d. move to democracies from dictatorships
b
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Recall the Application. Securitization refers to
A) the practice of purchasing loans, repackaging them, and selling them to the financial markets. B) the federal insurance received by home buyers to protect them from declining home values. C) the process used by the Federal Reserve to insure home builders against bank failures. D) the stocks and bonds used as collateral when one financial institution sells mortgages to another financial institution.
Supply is elastic if
A) a 1 percent change in price leads to a larger percentage change in quantity supplied. B) a 1 percent change in price leads to a smaller percentage change in quantity supplied. C) the slope of the supply curve is positive. D) the good in question is a normal good.
The PPP theory fails in reality for all of the following reasons EXCEPT
A) transport costs. B) monopolistic or oligopolistic practices in goods markets. C) the inflation data reported in different countries are based on different commodity baskets. D) restrictions on trade. E) inflation rates are unrelated to money supply growth.
The New York Stock Exchange is the only place where a corporation can sell stocks and raise money
a. True b. False Indicate whether the statement is true or false