The government expenditure multiplier and the tax multiplier are
A) different in size and the tax multiplier is larger.
B) not comparable because the government expenditure multiplier applies to aggregate supply and the tax multiplier applies to aggregate demand.
C) different in size and the government expenditure multiplier is larger.
D) identical in size.
E) not comparable because the government expenditure multiplier applies to aggregate demand and the tax multiplier applies to aggregate supply.
C
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In the 1970s and 1980s, the United States lost its comparative advantage in consumer electronics goods to Japan. What factor was most responsible for the development of Japan's comparative advantage in consumer electronics goods?
A) Japanese firms benefited from external economies. B) Japan has abundant supplies of natural resources needed to produce electronics goods. C) Japanese firms excelled in process technology. D) Japan has abundant supplies of labor.
Which of the following best describes how consumers and potato farmers in Spudville might be affected by imports of low-cost potatoes from Potato Town?
a. Prices fall in Spudville, but those losses are balanced by gains in Potato Town. b. Potato prices drop, which is helpful for consumers but a challenge for farmers. c. Potato farmers and consumers in Spudville both benefit from the cheap imports. d. Potato prices rise, but losses to consumers are offset by the benefits to farmers.
If opportunity costs are constant, then
A. factors of production must not be fully employed. B. the production possibilities curve is a negatively sloped straight line. C. the production possibilities curve bows outward. D. the production possibilities curve does not exist.
If an employer pays employees according to the volume of business revenue they individually generate, then the employer is applying the
A. contributive standard. B. productivity standard. C. merit standard. D. all of these.