If a nation is experiencing an inflow of capital and a balance of trade deficit, this is a problem if
a. the capital inflow is channeled into productive projects.
b. the capital inflow is channeled into unproductive projects.
c. the country's rate of unemployment is low.
d. the investment rate of the country is already high.
B
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A tax is regressive if it
A. is levied on consumers. B. takes a smaller percentage of income as income increases. C. takes a higher percentage of income as income increases. D. takes the same percentage of income regardless of income level.
If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning, then
a. Jeremy has a comparative advantage in cooking, and Margaret has a comparative advantage in cleaning b. Jeremy has a comparative advantage in cleaning, and Margaret has a comparative advantage in cooking c. we can conclude nothing about comparative advantage d. Jeremy has a comparative advantage in cooking, but we can conclude nothing about Margaret e. Margaret has a comparative advantage in cleaning, but we can conclude nothing about Jeremy
Other things constant, a decrease in resource prices will lead to
a. reduced profits and a reduction in short-run aggregate supply. b. increased profits and a reduction in short-run aggregate supply. c. reduced profits and an increase in short-run aggregate supply. d. increased profits and an increase in short-run aggregate supply.
Measuring the amount of unemployment in the economy is a straightforward task
a. True b. False Indicate whether the statement is true or false