If an increase in government spending causes an increase in government borrowing, this could induce
A. an increase in interest rates, which would cause private domestic investment to fall.
B. an increase in interest rates, which would cause private domestic investment to rise.
C. an increase in interest rates but no effect on private domestic investment.
D. a decrease in interest rates, which would cause private domestic investment to rise.
A. an increase in interest rates, which would cause private domestic investment to fall.
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Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Mia's opportunity cost of producing one bandana is
A) 1/3 of a hair pin. B) 2.5 hair pins. C) 3 hair pins. D) 9 hair pins.
Over the past 70 years, which of the following has occurred?
i. The service sector has grown so that now about 80 percent of workers are now employed in the service industry. ii. The manufacturing sector has shrunk, so now about 20 percent of workers are now employed in the production of goods. iii. The percentage of workers employed in the service industry has increased steadily. A) i, ii and iii B) i and iii C) ii only D) i only E) ii and iii
Air pollution is a problem because
A) people are greedy. B) people are not environmentally conscious. C) people make use of air without having to bear all the costs of their actions. D) a market economy does not provide as strong an incentive for environmental cleanup as a socialist economy.
Which of the following international organizations do globalization critics claim is serving the interests of large multinational corporations?
a. NATO b. The World Bank c. The Fed d. The United Nations e. The International Labor Organization