The idea that a person wants to have a bigger house in order to outdo his or her neighbors is referred to as:
A. the incentive compatibility problem.
B. luxury fever.
C. enlightened self-interest.
D. irrational.
Answer: B
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Per capita income in China is approximately ________% of the U.S. level
A) 17 B) 80 C) 40 D) 5
Whenever there is a deficit in the current account, the capital account: a. will be negative
b. will be positive. c. will be zero. d. could be negative, positive, or zero.
When changes in taxes and government spending occur in the economy without explicit action by Congress, such policy is called ______ fiscal policy:
A. Cyclical B. Implicit C. Discretionary D. Nondiscretionary
Refer to the figure. If the Federal funds market is at equilibrium at point B and the Federal Reserve decides to change the rate by a percentage point in order to reduce the chances of the economy going into recession, the supply of funds curve will have to shift to:
A. Sf1
B. Sf2
C. Sf3
D. Sf4