Suppose a policy change will generate $180,000 of benefits for low-income families and $150,000 of costs for high-income and middle-class families. This change can best be described as
A. Pareto efficient.
B. equitable.
C. inefficient.
D. potentially efficient.
Answer: D
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The demand for euros would come from
A. American exports to Europe. B. European demand for U.S. government bonds. C. American demand for European real estate. D. All of the above are correct.
Which of the following statements is TRUE about income and wealth?
A. Both income and wealth are stock measures. B. Income is a flow measure and wealth is a stock measure. C. Income is a stock measure and wealth is a flow measure. D. Both income and wealth are flow measures.
A cost of reengineering programs is that they change:
A. the measures used to evaluate high-level executives. B. the external market forces as well as the organizational architecture. C. decision rights but not performance-evaluation systems. D. performance-evaluation systems but not decision rights.
If a person's indifference curves can be represented as a straight line, the person views the goods as
a. perfect substitutes b. perfect complements c. complements (but not perfect) d. substitutes (but not perfect)