Expenditure-reducing policies designed to improve a current account deficit
A) turn domestic spending towards domestic goods.
B) reduce the overall level of demand in the economy.
C) turn domestic spending towards foreign goods.
D) increase the overall level of demand in the economy.
B
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Toddler Treats produces soft cereal bars for toddlers and Toddler Treats states on its packaging and in its advertising that its cereal bars are nut-free. All of the following could be accidents for Toddler Treats except which one?
A) an audit failure B) selling cereal bars that have been cross-contaminated with peanuts C) failing to earn economic profit D) infringing on other company's patent on toddler cereal bars
According to the Coase theorem, externality problems may be solved if the parties involved can negotiate. Which of the following is also needed?
a. clearly defined bargaining costs b. enforceable bargaining costs c. clearly defined, enforceable property rights and low bargaining costs d. a property right that cannot be bought or sold e. government regulation
If the nominal GDP is $16.2 trillion and money supply is $1.9 trillion, then the velocity is
a. 0.12. b. 16.2. c. 8.5. d. 1.9.
When observing people making choices that do not at first appear to be rational, an economist will ask,
a. "How might a psychologist explain this behavior?" b. "Why do we economists keep believing that people behave rationally?" c. "How might such behavior be serving someone's purposes?" d. "What is wrong with these people?"