Shifting resources from other goods to security goods may not increase a nation's national security if
a. the law of increasing opportunity cost is not applicable
b. the economy is already at full employment
c. the economy is not at full employment
d. national security is already at its maximum
e. other nations react to the shift by increasing their own spending on national security
E
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Which of the following is NOT a normative statement?
A) People buy more of a good or service when its price falls. B) The distribution of income is fair. C) The government ought to provide health care to everyone. D) Corporations should be more socially responsible.
U.S. data suggest that the U.S. economy is located where on the Laffer curve?
A) On the right side, after the peak in tax revenue. B) On the left side, before the peak in tax revenue. C) At the peak in tax revenue. D) The economy was on the right side before the 1980s and on the left side after 1980.
Which of the following is poorest country?
A) Canada B) Mexico C) Haiti D) New Orleans
The entry of firms into a perfectly competitive industry causes the supply curve to
A. increase its slope. B. decrease its slope. C. move toward the right. D. move toward the left.