The term human capital refers to education, training and experience
Indicate whether the statement is true or false
True
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A national park is an example of a pure public good, since it is there for everyone to enjoy
Indicate whether the statement is true or false
The self-control hypothesis suggests that people:
A. control their spending in order to save more when the real interest rate increases. B. substantially decrease their saving when the real interest rate increases. C. base their spending decisions (and consequently their saving decisions) on spending decisions of others. D. want to save, but lack the discipline to refrain from consuming.
Monopolies reduce market efficiency compared to perfectly competitive markets.
Answer the following statement true (T) or false (F)
Consider a small open economy that is in equilibrium with a current account surplus. (a)Draw a diagram showing this situation.(b)Now suppose that future income increases. Show what happens in your diagram. What happens to the world real interest rate and the equilibrium quantities of saving, investment, and the current account balance?(c)Repeat parts (a) and (b) for the case of a large open economy, showing a situation in which the home country initially has a current account surplus. Draw a diagram and describe how the rise in future income in the home country affects all four variables (the world real interest rate and the equilibrium quantities of saving, investment, and the current account balance) in both countries.
What will be an ideal response?