Spending on durable goods, nondurable goods, and services is included in:
A. net exports.
B. consumption expenditures.
C. government purchases.
D. investment.
Answer: B
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Economic choice and competitive behavior are the result of
What will be an ideal response?
In 1930, the U.S. government attempted to help domestic firms that were harmed by the Great Depression by passing the Smoot-Hawley Tariff. In response to this tariff, other countries ________ and international trade ________
A) lowered their tariffs; thrived B) raised their tariffs; collapsed C) doubled their tariffs; became unrestricted D) eliminated tariffs; began to grow outside of the United States
In the simple Keynesian framework, declines in planned investment spending that produce high unemployment can be offset by raising
A) taxes. B) government spending. C) consumer confidence. D) business confidence.
The "Lemon's" argument helps to explain why
A. physical depreciation is the only reason for the sharp price differential between new and used cars. B. physical depreciation is an insufficient reason for the sharp price differential between new and used cars. C. new and used cars sell for more than their intrinsic value would suggest. D. used cars fail to satisfy consumer demands for transportation.