When GDP decreases, consumption spending increases
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is correct about comparative advantage?
A) Some countries will have a comparative advantage in everything. B) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country. C) Having a comparative advantage without an absolute advantage is impossible. D) A comparative advantage in a good means that the country can produce more of the good than any other country. E) None of the above answers is correct.
In the figure above, which of the following is true?
i. Governments coordinate economic activities of households and firms. ii. Governments buy goods and services in goods markets. iii. Households pay taxes directly to firms. A) only ii B) only i C) only iii D) i and ii E) ii and iii
An oligopolistic situation involving the possible creation of barriers to entry would probably best be modeled by a
A) cooperative game. B) Prisoners' Dilemma game. C) Battle of the Sexes game. D) repeated game. E) sequential game.
To offset the effect of a steep fall in net exports on the economy, the government might: a. increase government purchases. b. decrease government purchases. c. increase taxes
d. none of the above.