A construction laborer might make more than a similarly skilled book store clerk because the working conditions in the book store are more desirable.
Answer the following statement true (T) or false (F)
True
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Expansionary fiscal policy
A) can be effective in the short run. B) can be effective in the long run. C) causes complete crowding out in the short run. D) is never effective because of crowding out.
The key difference between oligopoly and other market structures is the interdependence among producers.
Answer the following statement true (T) or false (F)
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period rises and
GDP Price Index rises. b. The quantity of real loanable funds per time period falls and GDP Price Index falls. c. The quantity of real loanable funds per time period rises and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Suppose the state of Wyoming passes a law that increases the tax on cigarettes. As a result, smokers who live in Wyoming start purchasing their cigarettes in surrounding states. Which of the following principles does this best illustrate?
a. People respond to incentives. b. Rational people think at the margin. c. Trade can make everyone better off. d. Markets are usually a good way to organize economic activity.