In Country Z, every time a poor person earns $100 by working, the person loses $100 in government support. Which term describes the situation faced by this person?
a. Poverty trap
b. Budget constraint
c. Opportunity cost
d. Utility maximization
a. Poverty trap
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Which of the following statements is the MOST accurate?
A) If PPP holds true, then the law of one price holds true for every commodity as long as the reference baskets used to reckon different countries' price levels are the same. B) If the law of one price holds true for every commodity, PPP must hold automatically. C) If the law of one price holds true for every commodity, PPP must automatically hold as long as the reference baskets used to reckon different countries' price levels are the same. D) If the law of one price does not hold true for every commodity, PPP cannot be true as long as the reference baskets used to reckon different countries' price levels are the same. E) If PPP holds true, then the law of one price must hold true automatically.
Consider an economy made up of 100 people sixteen years of age and older, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of people in the labor force is _____
a. 30 b. 60 c. 85 d. 90 e. 70
The only two options to control the growth of healthcare spending are
a. price controls and political rationing or competition and market prices. b. taxation or political mandates. c. subsidizing of healthcare insurance or government provision of healthcare. d. free healthcare or subsidized healthcare.
Criteria for an optimum currency area include all the following except
A) fiscal transfers. B) similar business cycle patterns. C) extensive trade with each other. D) a common language.