One reason the Chinese buy a great deal of U.S. government debt is because:
A. owning US debt is a sign of economic prosperity for China.
B. the rate of return for U.S. government bonds is higher than any other investment.
C. they have dollars left over from the sale of their goods to the U.S. and want to buy something dollar denominated.
D. the risk involved is lower for U.S. government bonds than for any other government bond in the world.
Answer: C
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If nuts and bolts are complements, an increase in the price of nuts caused by a change in the supply of nuts will a. increase the number of bolts sold. b. decrease the demand for nuts c. increase the price of bolts
d. decrease the number of bolts sold
Frederic Bastiat formulated
A. the theory of absolute advantage. B. the theory of comparative advantage. C. the petition of the candlemakers to shut out the sun. D. the infant industry argument.
Compared to a sampling of other developed nations, the U.S. income distribution is more unequal than many others. What accounts for this?
A. Other nations manipulate their data to look better. B. The lowest-income families in the United States earn much less than the lowest-income households in other nations. C. The highest-income families in the United States earn much more than the highest-income households in other nations. D. Marginal income tax rates are much higher in the United States than in any other nation.
As Tabitha consumes more ice cream sundaes within a given period of time, it is likely that each additional sundae consumed will
A. bring her successively more satisfaction. B. increase her quantity demanded for ice cream sundaes. C. bring her successively less satisfaction. D. increase the supply of ice cream sundaes.