Sometimes economists disagree because their values differ. Which of the following instances best reflects this source of disagreement?
a. One economist believes the North American Free Trade Agreement (NAFTA) has led to a loss of American jobs; another economist disputes this claim.
b. One economist believes that when income taxes are cut, people will increase their spending; another economist believes that when income taxes are cut, people will increase their saving.
c. One economist advises against increases in sales taxes because she thinks such increases are unfair to low-income people; another economist disputes the idea that increases in sales taxes are unfair to low-income people.
d. One economist believes that, prior to the Civil War, slavery contributed to economic growth in the South; another economist believes that slavery held back the South's economic growth.
c
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Measuring "y" on the vertical axis and "x" on the horizontal axis, convexity of indifference curves implies that the MRS of "y" for "x"
A) is decreasing as "x" increases. B) is increasing as "x" increases. C) is constant as "x" increases. D) cannot be calculated for large levels of "x".
Which country has the highest per capita health care expenditures in the world?
A) Canada B) France C) United States D) Japan
The total expenditure on goods and services in a country must be the same as the total income earned from selling goods and services because:
a. the government's annual budget has to balance. b. net exports in an economy is usually zero. c. one sector's expenditures are another sector's income. d. total investment in an economy always equals total saving. e. the sum of consumption spending and saving is zero.
Exporters employ an export management company as part of an indirect exporting strategy.
a. true b. false