Which of the following is often intended as an effect of a rescue package provided to a country?
A. It repels new private foreign lending to the country.
B. It helps to avoid the problem of moral hazard.
C. It limits any contagion effects.
D. It stimulates the outflow of capital from the country.
Answer: C
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Many argue the poor are getting poorer, at least in a relative sense. Evidence that contradicts this is that
A) household income of the lowest twenty percent of households relative to the highest twenty percent of households has fallen over the last thirty years. B) the official poverty level of income has increased over the years. C) household spending of the lowest twenty percent of households relative to the highest twenty percent of households has held constant over the last thirty years. D) the pretax distribution of income is more equal than the after-tax distribution of income.
Bid-rigging has all of these features EXCEPT
a. It is a collusive agreement b. The bid-riggers pay a smaller amount than without bid-rigging c. Bid-riggers need an auxiliary mechanism to allocate the good within the bid-riggers d. Bid rigging is usually a legitimate and legal strategy for the buyer-side
The relationship between the price of a good and the quantity that a single consumer is willing to buy during a particular time period is shown by the:
A. market supply curve. B. individual supply curve. C. market demand curve. D. individual demand curve.