Which of the following would be an appropriate discretionary fiscal policy to use when the economy is in a recession?
A. increased government spending
B. higher taxes
C. a balanced-budget reduction in both spending and taxes
D. an expansion in the money supply
Answer: A
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Japan has developed a comparative advantage in designing and producing automobiles. The source of its comparative advantage in these products is
A) technology. B) a strong central government. C) a favorable climate. D) abundant supplies of natural resources.
When demand is unit elastic, price elasticity of demand equals
a. 1, and total revenue and price move in the same direction. b. 1, and total revenue and price move in opposite directions. c. 1, and total revenue does not change when price changes. d. 0, and total revenue does not change when price changes.
Environmental problems occur exclusively in capitalist economies.
Answer the following statement true (T) or false (F)
Are countries that began modern economic growth more recently doomed to be permanently poorer than the countries that began modern economic growth in earlier periods? Explain.
What will be an ideal response?