Deficient information on unsafe products can cause:
A. overconsumption of a product.
B. underconsumption of a product.
C. the government to decide to subsidize a product.
D. collusion among firms.
Answer: A
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The takings clause states that the government can seize private property only if ________ is provided
A) comparably-valued property B) just compensation C) fair market value D) the seller's asking price
Shortly after their admission into the EMU, Ireland and the Netherlands
A) both seceded from the EMU. B) were expelled due to high levels of debt. C) breached the inflation convergence criterion that had qualified them for admission to the EMU in the first place. D) achieved inflation rates of zero percent. E) abandoned the Euro as their national currency.
Suppose the government deficit increases, but the interest rate remains the same. Which of the following things might have happened simultaneously to keep interest rates the same?
a. The government reduces the amount that people may put into savings accounts on which the interest is tax exempt. b. Because they are optimistic about the future of the economy, firms desire to borrow more to purchase physical capital. c. Consumers decide to decrease consumption and work more. d. All of the above could explain why the interest rate would be unchanged.
If nations trade on the basis of comparative advantage
A. a nation can usually gain only it has an absolute advantage. B. all trading partners share equally in the gain. C. all trading partners share in the gain with distribution determined by their negotiating ability. D. a nation with an absolute advantage gains more than the other nations.