In the permanent-income hypothesis incorporating rational expectations, the short-run MPC is high when changes in current income
A) are small.
B) are considered a good predictor of future income changes.
C) are considered a poor predictor of future income changes.
D) occur when the economy is nearing cyclical peaks or troughs.
B
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Which one of the following statements is TRUE for Norway, a non-euro country?
A) Of course, owners of capital that cannot be moved cannot avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. B) Even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. C) Owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. D) Even owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. E) Only owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.
If a life can be saved for $250 using Method A and $260 using Method B,
a. it would be efficient to shift resources from A to B b. it would be efficient to shift resources from B to A c. both methods should be pursued to the maximum extent possible d. neither method should be used if methods with higher dollar values are available e. both methods are on the economy's production possibilities frontier
According to new growth theory, discovering and implementing new __________ is what causes economic growth
A) ways of managing personnel B) manufacturing techniques C) ideas D) resource sources E) none of the above
Once the national health care program goes into effect and more people will pay fewer of their health care expenses out of their own pockets than they did previously, we can expect
A) the quantity of health care services demanded will increase. B) the quantity of health care services demanded will decrease. C) the quantity of health care services supplied will increase. D) the quantity of health care services supplied will decrease.