One of the potential downsides of expansionary fiscal policy is that it often increases
A. national debt.
B. taxes.
C. budget surpluses.
D. unemployment.
Answer: A
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The two tendencies of a firm in a cartel are the incentive to:
a. cheat to maximize joint profits and the incentive to raise prices. b. cheat and avoid collusion and the incentive to raise price to maximize the firm's share of profits. c. increase output in order to minimize per-unit cost and the incentive to reduce price in order to maximize joint profit. d. cooperate to maximize joint profits and to cheat on the agreement in order to increase the firm's share of the profit.
In the current account, the largest category of international transactions is
A) imports. B) international investment. C) statistical discrepancy. D) net interest. E) net transfers.
The part of the balance of payments that records purchases of assets a country has made abroad and foreign purchases of assets in the country is the
A) capital account. B) current account. C) financial account. D) statistical discrepancy account.
Luke was earning $60 per hour and working 40 hours per week. Luke's wage rose to $70 per hour, and as a result, he now works 50 hours per week
What can you conclude from this information about the substitution and income effects of a wage increase for Luke?