Better insurance benefits increase the incentive of some individuals to work. This statement is best described as
A. a comparative economics statement.
B. a positive statement.
C. an example of the ceteris paribus assumption.
D. a normative statement.
Answer: B
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A country's balance of payments accounts records
A) only the goods and services purchases among countries over a period of time. B) the international trading, borrowing, and lending positions of a country over a period of time. C) the flow of human and non-human capital among countries over a period of time. D) only official transactions between governments over a period of time.
When a man invests in controlling weeds and trash that tend to accumulate in his yard, both he and his neighbors benefit from his action
Is an externality associated with his private decision? If so, explain its effect, and determine whether the efficient level of weed control occurs when the individual invests in weed control.
The term "compensating differential" refers to
a. the fact that workers who do similar work should be paid the same wage. b. the fact that some workers live further from their jobs than do other workers. c. a wage difference that is due to unionization of some firms but not others. d. a wage difference that arises from nonmonetary characteristics of different jobs.
In the open-economy macroeconomic model, if there is a surplus in the market for foreign-currency exchange, which of the following will move the market to equilibrium?
a. the real exchange rate depreciates and net exports fall. b. the real exchange rate depreciates and net exports rise. c. the real exchange rate appreciates and net exports fall. d. the real exchange rate appreciates and net exports rise.