A transfer payment that rises automatically during a recession is
A) interest payments on the national debt.
B) unemployment compensation.
C) Social Security payments to retired persons.
D) government payments to war veterans.
Ans: B) unemployment compensation.
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An increase in Swiss interest rates will cause
A) an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B) a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C) an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D) a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
Trade between countries is only based on absolute advantage
Indicate whether the statement is true or false
The basic problem with the government setting an absolute poverty line is that it is
a. completely objective. b. somewhat arbitrary. c. unconstitutional. d. based on average income.
Consider a worker who dislikes working end enjoys consuming a composite good. With labor hours on the horizontal and the composite consumption good on the vertical axis, which of the following statements are true.
A. If the worker's tastes are convex, the slope of indifference curves increases as we move to the right in the graph. B. The worker becomes better off as we move to the northwest in the graph. C. A tax on wage income does not change this worker's indifference map. D. All of the above. E. None of the above.