Governments can impede economic growth for many reasons. Which of the following is not a major reason?
a. Government borrowing can crowd out private investment.
b. High taxes can reduce consumption & investment, and they can reduce the incentive to work.
c. Government projects may have relatively low marginal returns.
d. Governments may spend more than they earn in tax revenues.
e. Regulation may damage production incentives.
.D
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A country must have absolute advantage in a good in order to have comparative advantage in that good
Indicate whether the statement is true or false
Assume a fixed demand for money curve and the Fed decreases the money supply. In response, people will:
a. sell bonds, thus driving up the interest rate. b. sell bonds, thus driving down the interest rate. c. buy bonds, thus driving up the interest rate. d. buy bonds, thus driving down the interest rate.
_____ is an online venue where businesses and individuals can hedge their uncertainty about whether legislation that affects them will be enacted
a. The American Civics Exchange b. Tradesports c. The Iowa Electronic Markets d. The Gallup and Roper surveys
Economic models
a. are constructed to mirror reality as closely as possible, and in this respect economic models are no different from other scientific models. b. are constructed to mirror reality as closely as possible, and in this respect economic models are very different from other scientific models. c. are simplifications of reality, and in this respect economic models are no different from other scientific models. d. are simplifications of reality, and in this respect economic models are very different from other scientific models.