An open economy
A) can save only by building up its capital stock.
B) can save only by acquiring foreign wealth.
C) cannot save either by building up its capital stock or by acquiring foreign wealth.
D) can save either by building up its capital stock or by acquiring foreign wealth.
E) can save by avoiding excessive imports.
D
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To reduce moral hazard, a firm may
A) pay workers at a piece rate. B) offer a year-end bonus if firm profits are up. C) offer stock options. D) All of the above.
External costs are
A) borne by individuals other than those who incurred them. B) another term for implicit costs. C) borne by the public but incurred by the government. D) borne by the government but incurred by the public.
One reason scholars argue that government activity should be considered when evaluating the measured income distribution because: a. the lowest-income quintile has benefited from state-subsidized higher education more than have middle-income and higher income quintiles. b. the higher-income quintiles have benefited more than the poor from housing subsidies and Medicaid
c. the middle and higher-income quintiles have benefited more than the poor from state-subsidized airports, airlines, operas, and museums. d. the lowest-income quintile has benefited more than middle-income and upper-income quintiles from state-subsidized airports, airlines, operas, and museums.
Related to the Economics in Practice on p. 437: If the effects of pollution on society as a measure of welfare were included in GDP calculations, the measured level of GDP would most likely
A. decrease. B. become negative. C. increase. D. not change.