Which of the following will always cause a reduction in net exports?
A) an increase in domestic output
B) a reduction in the real exchange rate
C) a reduction in government spending
D) a reduction in investment
E) all of the above
A
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Which factors account for most of the growth in the HPAEs?
What will be an ideal response?
A financial services company may hire a professional athlete as a spokesperson because:
A. the athlete is more informed about financial services than the general public. B. this can act as a credible signal to consumers that the company has a high quality product they are willing to spend money advertising. C. does not serve as a credible signal to consumers, since athletes are not often financial service experts. D. can signal to customers that the services are worse than they actually are.
Health Care is not like other goods and services because
A. we tend to like to go to the doctor and do it for enjoyment, whereas we hate going to the dentist. B. people go to the doctor to find out what is wrong, whereas they get other services knowing more about what they need. C. people go to the doctor to find out what is wrong, whereas they get other services knowing more about what they need and if a newly discovered cure costs a lot, we say, incorrectly, that its price has risen. D. if a newly discovered cure costs a lot, we say, incorrectly, that its price has risen.
The exchange of secondhand securities
a. takes place in an oligopolistic market b. does not provide funds to the firm that issued those securities c. includes the initial sale when securities are issued by a firm d. involves very few institutional investors e. lowers the liquidity of the securities