The flypaper effect causes money to move from where it initially hits and sticks somewhere down the bureaucratic chain.
A. True
B. False
C. Uncertain
B. False
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Suppose U.S. consumers start buying more English shoes and fewer U.S. shoes. What impact will this trend have on the foreign exchange market?
a. U.S. demand for foreign exchange, in general, and British pounds, in particular, will increase. b. U.S. demand for foreign exchange, in general, and British pounds, in particular, will decrease. c. U.S. demand for British pounds will increase, but the demand for foreign exchange will probably decrease. d. U.S. demand for British pounds will decrease, but the demand for foreign exchange will probably increase. e. There is no effect on foreign exchange.
Which of the following is a normative statement?
A. The taxes paid by the poor should be reduced in order to improve the income distribution in the U.S. B Presidential candidates should not be given funds from the federal government to run campaigns. c. State governments should not subsidize corporations by training welfare recipients. D. The sea otter should not be allowed to spread into Southern California coastal waters, because it will reduce the value of fisheries. E. all of the above
Suppose there are a series of forest fires that affect the lumber industry while, at the same time, consumers demand more wooden furniture. The wooden furniture market would experience
A. An increase in quantity and an indeterminate change in price. B. A decrease in price and an indeterminate change in quantity. C. An increase in price and an increase in quantity. D. An increase in price and an indeterminate change in quantity.
Management fees for mutual funds are:
A. fixed by regulation but can vary by the size of the fund. B. usually a percentage of the return achieved by fund managers. C. fixed by regulation. D. different across funds and can significantly impact the return to an investor.