An increase in government spending may expedite recovery from a recession in the short run, but in the long run this policy may
A) raise interest rates and reduce consumer expenditures on automobiles and new houses.
B) make domestic businesses less competitive in international markets as the dollar appreciates in value.
C) reduce investment in new capital.
D) All of the above are correct.
D
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Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour
A) Brenda has an absolute advantage in the production of X and Y. B) Agnes has a comparative advantage in the production of Y. C) Brenda has a comparative advantage in the production of X. D) Brenda cannot gain from trade.
Which firm provides the better signal when trying to decide which of the firms' stock to buy?
A) Firm A, which uses an independent accounting firm for auditing. B) Firm B, which uses an internal group for auditing. C) Firm C, which has seen its stock go up by $20 per share in the last week. D) Firm D, which hasn't been under SEC investigation for over 5 years.
When a player in a game adopts a strategy which always yields the highest benefit regardless of what the other player does, that player is using a(n)
A) opportunistic strategy. B) dominant strategy. C) tit-for-tat strategy. D) aggressive strategy.
Each firm in the egg industry (competitive) produces 15 million eggs per year. Each egg has an average cost of $0.02 and they sell an egg for $0.06 . The marginal cost of a string is
a. $0.02 b. $0.06 c. $0.04 d. not enough information provided.