When economists are critical of government regulations that prohibit free individuals from making certain kinds of contracts, for example, to purchase a good or service, they will usually invoke the concept of
A. marginal analysis.
B. mutual gains from voluntary trade.
C. inflation-unemployment trade-off.
D. the need for abstraction.
E. externalities.
Answer: B
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The basic transfer is defined as
(a) net capital inflow. (b) interest payments on foreign debt. (c) net capital inflow divided by interest payments on foreign debt. (d) net capital inflow minus interest payments on foreign debt.
2 Conflicting Principles (taxes and fairness)
What will be an ideal response?
Describe the basic activities of Fannie Mae in the secondary mortgage market. How are these activities financed?
What will be an ideal response?
Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves of two distinct groups of customers-residential and business. Bob is likely to price discriminate because
A) elasticities differ across markets. B) the installation of carpets cannot be resold. C) Bob can probably identify which consumers belong to which segment. D) All of the above.