If the market mechanism is efficient, the marginal cost accurately measures the opportunity cost of a good or service
a. True
b. False
Indicate whether the statement is true or false
True
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The U.S. economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of many Western European countries. Which of the following explains this?
A) The United States has a higher rate of job mobility than do many Western European countries. B) U.S. unions impose stricter work rules as compared to unions in Western European countries. C) U.S. government regulations impose stricter work rules as compared to government regulations in Western Europe. D) U.S. workers can obtain unemployment insurance for a longer period of time as compared to workers in most Western European countries.
Which of the following statements about international trade is true?
A) Potentially, a country can have absolute advantage in all goods. B) Potentially, a country can have relative advantage in all goods. C) After trade, countries tend to specialize in the production of those goods in which they enjoy absolute advantage. D) None of the above is true.
The burden of the internal portion of the debt is incurred
A. Solely by the U.S. government. B. When the debt comes due. C. When the debt-financed activity takes place. D. None of the choices are correct.
Most of the direct spending at the state government level is on
A. Education. B. Public safety. C. Transportation. D. Defense.