The present value of a given payment in the future ________ when the interest rates fall
A) decreases B) reverts to the original value
C) increases D) remains the same
C
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How could the removal of labor market distortions increase employment even if the elasticity of factor substitution is very low?
What will be an ideal response?
In 1790, there were only three banks in the U.S. By 1811, there were 88 . Most of these new banks were:
a. created and operated by the federal government. b. created and operated by state and local governments. c. private-sector, state-chartered banks. d. branches of banks with English charters.
Which of the following observations is true of subsidies? a. They act as barriers to trade
b. They reduce the amounts of actual labor, raw material, and capital costs of production. c. They are capable of distorting trade patterns. d. They reduce inefficiencies.
A government policy of providing free public K-12 education is most consistent with
A) Pareto-efficiency. B) the First Theorem of Welfare Economics. C) the Second Theorem of Welfare Economics. D) the contract curve.