If the demand for new automobiles falls when income falls, automobiles are said to be normal goods
a. True
b. False
A
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The Solow model is used to explain ________
A) why some economies experience higher rates of growth than others B) the relationship between price and quantity demanded C) the relationship between the rate of inflation and the rate of unemployment D) the notion of opportunity cost
Government institutions that protect the rights of individuals are ______
a. the executive, legislative, and judicial branches of government b. federal, state, and local governments c. federal agencies such as OSHA, FEC, and the FCC d. police, military branches, and the court system
Which of the following relationships involves asymmetric information?
a. A recruiter for a college football team evaluates the performance of a high-school player.
b. A loan applicant knows more about the likelihood her business will be successful than the loan officer.
c. Someone considering buying running shoes looks at a number of online reviews by buyers.
d. All of the above are correct.
Assume the United States has an absolute advantage in the production of everything compared to the African nation of Berundi. Can you think of any reason why both nations would still find it to their mutual advantage to trade with each other?
What will be an ideal response?