If a country's government reduced corruption and reformed its tax system so that businesses found operating there less risky, it's likely that this country's
a. net exports and net capital outflows would increase.
b. net exports would increase and its net capital outflows would decrease.
c. net exports and net capital outflow would decrease.
d. net exports would decrease and its net capital outflow would increase.
c
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Refer to Figure 13-9. Which of the graphs in the figure depicts a monopolistically competitive firm that is earning economic profits?
A) Panel A B) Panel B C) Panel C D) Panel A and Panel B
Recent data has shown that income and volunteer time are positively related. Assuming that volunteer time is included in leisure time, what could explain this observation?
A) Higher income individuals view leisure as a normal good such that the income effect dominates the substitution effect. B) Higher income individuals view leisure as a normal good such that the substitution effect dominates the income effect. C) Higher income individuals view leisure as an inferior good such that the income and substitution effects both increase leisure time. D) Both A and C.
The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob will buy theft insurance to cover the full $100
A) as long as it does not cost more than $25. B) as long as it does not cost more than $50. C) as long as it does not cost more than $70. D) at any price.
An increase in government spending by $100 would, if the MPC = 0.90, result in an increase in real GDP by:
A. $1,000. B. $9,000. C. $900. D. $190.