Which of the following would be considered an example of structural policy?
A. Provision of additional cash to the banking system.
B. A reduction in income tax rates.
C. An attempt to reduce the government budget deficit by reducing spending.
D. A decision by a developing country to reduce government control of the economy and to become more market-oriented.
Answer: D
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Is it correct to say that if the total balance of payments does not equal zero, then the reserves account will automatically adjust to ensure it equals zero
a. Yes. b. No. c. The answer is "maybe" because it always depends on the circumstances.
The combined impact of the labor pool effect of globalization for low-skilled workers and the market expansion effect of globalization for high-skilled workers is
A. falling income inequality, since one effect helps those with low incomes and the other effect hurts those with high incomes. B. rising income inequality, since one effect helps those with high incomes and the other effect hurts those with low incomes. C. stable income inequality, since one effect helps those with low incomes and the other effect helps those with high incomes. D. stable income inequality, since one effect hurts those with low incomes and the other effect hurts those with high incomes.
Refer to the diagram. Assuming equilibrium price P 1 , producer surplus is represented by areas:
A. a + b.
B. a + b + c + d.
C. c + d.
D. a + c.
A total cost function will start
A. at the origin if there are fixed costs. B. at the origin if there are no fixed costs. C. on the vertical axis if there are no fixed costs. D. on the horizontal axis.