Purchasing power parity (PPP) is a well-known theory that seeks to define relationships between currencies.
a. true
b. false
a. true
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An increase in the production of capital goods and a reduction in the production of consumer goods would most likely lead to a faster rate of future economic growth
a. True b. False Indicate whether the statement is true or false
As entry of new firms occurs in an existing monopolistically competitive industry, the
a. market demand curve will shift to the right b. market demand curve will shift to the left c. demand curves of existing firms shift to the right d. demand curves of existing firms will become more price elastic e. market supply curve will shift to the left
There is a strong consensus among economists in favor of free trade. Governments appreciate the reasons for free trade as well but they may sometimes restrict trade because
a. their absolute advantage is greater than their comparative advantage b. their comparative advantage is greater than their absolute advantage c. the trade generates negative gains d. they may want to protect infant industries e. they prefer dumping to trade
Which of the following is an example of an indirect tax?
a. value-added tax b. income tax c. inheritance tax d. head tax