When housing prices fall, as they did beginning in 2006 following the housing market bubble, consumption spending on furniture, appliances, and home improvements ________ as many households found it ________ to borrow against the value of their homes
.
A) increased; easier B) declined; harder C) increased; harder D) declined; easier
B
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Antitrust law is the law that regulates ________ and prevents them from becoming ________
A) oligopolies; monopolies B) monopolies; oligopolies C) monopolistically competitive firms; oligopolies D) oligopolies; monopolistically competitive firms
Inflation reduces the return to capital gains _____
a. only on large assets such as houses b. because people have to pay taxes on nominal capital gains c. when tax rates on capital gains are high d. only under hyperinflation
An increase in growth rates will cause: a. an inward shift of an economy's production possibilities curve
b. an outward shift of an economy's production possibilities curve. c. a movement from a point on an economy's production possibilities curve to a point inside the curve. d. an economy's production possibilities curve to slope upward.
Workers in one country are more productive than workers in another country because
A. they have fewer complementary factors to work with. B. they have more complementary factors to work with. C. they are better motivated and paid.