When the economy has substantial additional saving, deficit spending will have a large "crowding out" effect
a. True
b. False
Indicate whether the statement is true or false
False
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Assume that two countries are considering trading with each other for the first time. Also assume that one of the countries has an absolute disadvantage in producing everything compared to the other country
How would it still be possible for these two nations to benefit from trade with each other?
Americans who benefit from immigration include
a. firms that hire immigrants. b. workers whose skills are complementary with immigrants' skills. c. consumers who purchase goods produced using immigrants labor. d. property owners who own land in immigrant neighborhoods. e. All of the above.
If a public utility is subject to average-cost pricing regulation, it will: a. earn a normal rate of return
b. produce the socially efficient level of output. c. suffer economic losses without a subsidy. d. earn an above-normal rate of return.
The Lorenz curve and the Gini coefficient are different in that the Lorenz curve
a. includes income earned in foreign countries while the Gini coefficient only includes domestic income b. is much more accurate a reflection of income distribution than the Gini coefficient c. is a graphic representation and the Gini coefficient is a numerical measurement of income distribution d. includes income from government programs while the Gini does not e. compares different countries while the Gini only reflects data within a country