Holding all other factors constant, which of the following would shift the demand curve for air travel to the left?
(a) An increase in fuel costs.
(b) Increased wages for airline staff.
(c) Decreased price of ferry tickets.
(d) Both (b) and (c).
Answer: (c) Decreased price of ferry tickets.
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Which of the following is not a government activity that is involved in public finance?
A. Running government-owned enterprises such as hospitals, utilities, and lotteries. B. Redistributing income through various taxes and income-transfer payments. C. Providing public goods and services such as national defense and education. D. Regulating the activities of firms in the financial sector of the economy.
In an open economy, Y = C + I + G + NX. From this we may infer that ________
A) output is greater in an open economy than in a closed economy B) the condition for goods market equilibrium is that S = I + G + NX C) net exports can be zero only if the domestic real interest rate is equal to the world real interest rate D) if saving is greater than zero, NX cannot be zero E) none of the above
Tariffs and quotas are used to promote trade with foreign countries
Indicate whether the statement is true or false