One of the consequences of the U.S. trade deficit is that:
A. domestic inflation has resulted.
B. the accumulation of American dollars in foreign hands has enabled foreign firms to build
factories in America.
C. the distribution of income in the United States has become less unequal.
D. the system of flexible exchange rates has been abandoned in favor of a new gold
standard.
B. the accumulation of American dollars in foreign hands has enabled foreign firms to build
factories in America.
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The following are impediments to economic growth EXCEPT
A) dead capital. B) increased education. C) lack of economic freedom. D) bureaucratic inefficiency.
Which of the following is true when profit-maximizing firms in a competitive market are allowed to freely emit negative externalities on society?
a. Consumers are paying a market equilibrium price that reflects the full social marginal cost of production. b. Consumers are paying a market equilibrium price that reflects only the external marginal cost of production. c. Consumers are paying a market equilibrium price that is less than the socially efficient price, and consuming more than the socially efficient quantity. This means society is implicitly subsidizing producers by allowing them to pollute. d. None of the above is correct.
The proponents of adaptive expectations believe that:
a. there will be a substantial time lag before people anticipate the effects of a shift to a more expansionary macro-policy. b. macro-policies that stimulate demand and place upward pressure on the general level of prices will temporarily increase output and employment. c. discretionary changes in macro-policy can be made in a manner that will reduce the economic ups and downs of a market economy. d. all of these are true.
What does the payroll tax fund?
a. Social Security and Medicare b. military and homeland security c. environmental protection d. Social Security and education