If the economy is slipping into a recession, which of the following would be an appropriate fiscal policy?
A) a decrease in oil prices
B) a decrease in government purchases
C) a decrease in taxes
D) an increase in the money supply and a decrease in interest rates
C
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"If I didn't go to class tonight, I would save the $2 campus parking fee and spend three hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is: a. $0
b. $2. c. $30. d. $32.
Rational voter ignorance can lead politicians to: a. favor programs with immediate and clear benefits and unclear and deferred costs
b. fail to take all the benefits and costs of a program fully into account in deciding on which policies to favor. c. do a poor job of overseeing the actions of public sector bureaus. d. all of the above
Which of the following is an inherent disadvantage to being a multinational enterprise (MNE)?
A. An MNE does not have the same assets as those held by its local competitors in the host market. B. An MNE does not initially have the native understanding of local laws, customs, procedures, practices, and relationships. C. An MNE's profits are doubly taxed by two governments. D. An MNE does not enjoy comparative advantages in the same goods as those of its local competitors in the host market.
Wars, new inventions, harvest failures, and changes in government policy are examples of
A. the business cycle. B. economic models. C. opportunity costs. D. shocks.