Pareto improvements that require the use of side payments typically are easy to coordinate and tend to enhance economic efficiency
a. True
b. False
B
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All else equal, if U.S. stocks are perceived to have become riskier compared to financial investments in other countries, then the market equilibrium value of the exchange rate for the U.S. dollar will:
A. fall. B. become fixed. C. be equal to the value chosen by the Federal Reserve. D. rise.
The quantity of real GDP produced by one hour of labor is defined as
A) the advance in technology. B) economic growth. C) the growth rate of technology. D) real GDP per person. E) labor productivity.
Why are nonprofit institutions counted as businesses in the circular flow?
What will be an ideal response?
When the consumer spends a small portion of his income on a good, demand will be
A. elastic. B. unit-elastic. C. inelastic. D. elastic, unit-elastic or inelastic depending upon supply.