The principle of voluntary exchange is the concept that a voluntary exchange between two people makes both people better off.
Answer the following statement true (T) or false (F)
True
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Technology or production processes developed in a particular country:
A. may give that country a temporary comparative advantage. B. may set that country back until they earn back the research and development costs. C. will give that country a permanent comparative advantage. D. generally are not transferrable to other nations.
The national income and consumption data for the United States over the time period 1970–91 creates a consumption curve that runs through the origin. This differs from the consumption curve depicted by Keynes or by Duesenberry (MPC falling or remaining constant as income increases) which shows the curve beginning above the origin. The explanation is that
a. the consumption curve reflecting the data is a short-run consumption function b. the consumption curve reflecting the data is only meant to be an approximation to the reality of the Keynesian and Duesenberryian curves c. the Keynesian or Duesenberryian consumption curves are long-run consumption functions d. the consumption curve reflecting the data is a long-run consumption function e. autonomous consumption in the United States is equal to $0
If firms sell more output than expected, planned investment:
A. equals actual investment. B. equals zero. C. is greater than actual investment. D. is less than actual investment.
Which of the following is an automatic stabilizer that moves the federal budget toward deficit during an economic contraction and toward surplus during an economic expansion?
A. Congress votes for a federal investment in infrastructure. B. corporate subsidies for green energy investments C. unemployment benefits D. a stimulus package that reduces personal income taxes