If the real interest rate falls, then the
A. consumption schedule will shift downward.
B. investment schedule will shift upward.
C. point moves along the investment schedule to the right.
D. investment schedule will shift downward.
Answer: B
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Let's assume Ben can produce 3 units of a material good (M) or 3 units of a spiritual good (S) in a day, while Cal can produce 1 M or 2 Ss in a day. Both Ben and Cal can potentially produce a larger combination of M and S
A) if Ben specializes in S and Cal in M and they exchange with one another. B) if Ben specializes in M and Cal in S and they exchange with one another. C) if Ben specializes in both goods and doesn't exchange with Cal. D) only if Cal finds a way to also produce 3 M and 3 S per day.
It is difficult to get the necessary information to apply corrective taxes in the real world, thus _____
a. most government reluctantly apply to reduce negative externalities b. use regulation to reduce negative externalities c. use moral suasion to reduce negative externalities d. most governments fail to do anything to reduce negative externalities
Which of the following statements is correct about creating money?
a. Insurance companies can literally create money through the process of making loans. b. The banking system can literally create money through the process of making loans. c. The banking system cannot literally create money through the process of making loans. d. Insurance companies cannot literally create money through the process of making loans.
If an Industry consists of two large firms, it is known as a(n)
a. monopoly b. perfect competition c. monopolistic competition d. natural monopoly e. duopoly