Which one of the following statements is TRUE?
A. In the Keynesian model, the supply of saving is determined by the level of investment.
B. In the classical model, the supply of saving is determined by the rate of interest.
C. In the classical model, the supply of saving is determined by the level of income.
D. In the Keynesian model, the supply of saving is determined by the rate of interest.
Answer: B
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A few decades ago, there were hardly any Subway restaurants in India. Now, they are present in almost every big city. This is an outcome of:
A) fair trade union practices. B) traditionalism. C) the protectionist policies adopted by the Indian government. D) globalization.
The main conclusion drawn from the criticisms around foreign aid is:
A. trade should be encouraged instead of aid. B. aid should no longer exist, as it is an inefficient use of dollars. C. more accountable means of distribution and program evaluation are needed. D. immigration policies should be loosened and aid should be halted.
If an economy used gold as money, its money would be
a. commodity money, but not fiat money. b. fiat money, but not commodity money. c. both fiat and commodity money. d. functioning as a store of value and as a unit of account, but not as a medium of exchange.
Industry A has four firms. The largest firm in Industry A has more than 90 percent of the market share. Industry B also has four firms, but each of those four firms in Industry B has 25 percent of the market share. The Herfindahl-Hirschman index will be
A. larger for Industry A than Industry B, but the four-firm concentration will be the same. B. the same for both industries, but the four-firm concentration will be larger for Industry A than Industry B. C. larger for Industry B than Industry A, but the four-firm concentration will be the same. D. the same for both industries, but the four-firm concentration will be larger for Industry B than Industry A.