A standard of deferred payment is most essential in a
a. barter economy.
b. cash-only economy.
c. credit economy.
d. primitive economy.
c. credit economy.
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Four possibilities have probabilities 0.4, 0.2, 0.2 and 0.2 and values $20, $20, $40, and $40 respectively. The expected value is:
a. $22 b. $24 c. $26 d. $28
Setting a proper price is difficult in a nationalized industry because
a. costs will not be restricted by competitive pressures b. the government will have difficulty purchasing resources c. the government will have difficulty estimating demand for the product d. there is a consumer bias against government-supplied products e. government will not have access to relevant information
The economy is in equilibrium, TP = TE, and Real GDP is $2,000 billion. The MPC is 0.75, the multiplier is operative, and idle resources exist at each expenditure round. Autonomous investment spending falls by $10 billion. As a result, the TE curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and Real GDP
__________ by __________. A) downward; rise; decrease; falls; $7.5 billion B) downward; fall; increase; rises; $40 billion C) downward; rise; decrease; falls; $40 billion D) upward; rise; decrease; falls; $40 billion E) downward; fall; decrease; falls; $7.5 billion
Suppose a recent study shows that in Country A, consumers pay an average of about $169,000 per job per year maintained by import protection. Given that these employees earned much less than $169,000 per year, it would be much cheaper to simply pay these workers not to work and impose no import restrictions. Why do you think that, in spite of the fact that there is a net loss in national well-being, the government of Country A has maintained these barriers?
What will be an ideal response?