International trade increases world economic efficiency for the same reasons that domestic trade increases national economic efficiency
a. True
b. False
A
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Suppose in a country, the working-age population doubles due to immigration. However, the country neglects investment in research and development and hence the country's level of technology is stagnant
Which of the following statements will be true of this economy? A) The economy will experience steady economic growth. B) The savings rate will remain stagnant over the years. C) The economy's output will rise at an increasing rate over time. D) The economy cannot achieve a sustained growth.
Charging risk-based insurance premiums is a time-honored principle of insurance management to reduce
A) moral hazard. B) adverse selection. C) free riding. D) principal-agent problems.
The supply curve for housing in the very short run is likely to be
A. perfectly elastic. B. unit-elastic elastic. C. very elastic. D. very inelastic.
Current income maintenance programs
A. fail to make the income distribution more equal. B. have safeguards to ensure that recipients work whenever physically able. C. reduce the incentive of recipients to work. D. often provide benefits to people who are working and earning substantially more than the poverty level.