When dealing with strategic trade policy, one practical problem for government is the likelihood of retaliation by foreign governments
a. True
b. False
Indicate whether the statement is true or false
True
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If the marginal utility of a product is diminishing relative to the marginal utility of other products, then _____
a. the consumer is in equilibrium b. the consumer has been purchasing relatively less of the product c. the consumer has been purchasing relatively more of the product d. the price of the product must have increased e. the price of the product must have decreased
If there were no real wealth or interest rate effect, the aggregate demand curve would still be downward sloping
a. True b. False Indicate whether the statement is true or false
Under a tournament pay scheme, the pay gap between a few "winners" (those who receive big promotions) and other employees exceeds the productivity differences between these two groups. The reason firms might use such a scheme is that they
a. gain tax advantages by paying a few workers large salaries and using fringe benefits to compensate the rest of the employees. b. hope to raise the productivity of those who receive big promotions because marginal productivity adjusts to equal wages. c. overestimate the productivity of those who receive big promotions and inadvertently pay them "too much." d. hope to raise the productivity of all other workers, who will work harder trying to gain a big promotion
Private property rights are essential to market economies.
Answer the following statement true (T) or false (F)