Income transfers are current payments to individuals for which no current goods or services are exchanged.
Answer the following statement true (T) or false (F)
True
Income transfers, not government purchases, are payments to individuals for which no current goods or services are exchanged, such as Social Security, welfare, and unemployment benefits.
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If countries have similar factor endowments and productivities, what type of trade are they most likely to have?
What will be an ideal response?
Assume the market demand for wheat may be written as
Q = 45 - 2p + 0.3Y + 1pb where Y refers to income and pb refers to the price of barley. Assuming that wheat and barley both sell for $1, and income is $20, calculate the price elasticity, cross price elasticity and income elasticity for wheat.
The sensitivity of the change in quantity consumed of one good to a change in the price of a related good is called
A) cross-elasticity. B) substitute elasticity. C) complementary elasticity. D) price elasticity of demand.
An example of foreign direct investment is the
A) domestic acquisition of less than 10 percent of a foreign company. B) foreign purchase of more than 10 percent of stock in a domestic company. C) purchase of livestock from abroad. D) sale of insurance in a foreign nation.