Evaluate this sentence, "The best way to get rid of poverty is to increase government expenditures on welfare programs."
a. This sentence is inherently true. By providing the poor with more money they will no longer remain in poverty.
b. This sentence is true. Everyone would be better off if we increased government transfer programs.
c. This sentence is false. Increasing transfer benefits like welfare will lower the opportunity cost of making decisions that can lead to poverty
d. This sentence is false. Increasing government expenditures will only be harmful to those in poverty.
C
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What is the relationship between the slope of the aggregate expenditure curve and the expenditure multiplier?
What will be an ideal response?
Using a decision tree:
A. allows a player to see his optimal strategy in a simultaneous game. B. can help identify the dominant strategies in a prisoner's dilemma-type game. C. allows a player to see his optimal strategy in a sequential game. D. can help define a binding commitment strategy.
If the United States imposes an import quota on clothing, U.S. imports
a. increase, exports increase, and U.S. net exports are unchanged. b. increase, exports decrease, and U.S. net exports increase. c. decrease, exports increase, and U.S. net exports decrease. d. decrease, exports decrease, and U.S. net exports are unchanged.
In the above figure, the economy is initially at point B. If the exchange rate falls, there is
A) a movement to point C. B) a movement to point A. C) a shift to AD2. D) a shift to AD1.