When domestic prices rise,
A. people buy fewer imported goods.
B. people buy more imported goods.
C. interest sensitive consumption rises.
D. exports rise.
Answer: B
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Arguments for the balanced budget amendment include all of the following EXCEPT
A) a balanced budget amendment would limit Congress from using fiscal policy during a recession. B) a balanced budget amendment would increase capital formation. C) a balanced budget amendment would reduce the taxation burden on future generations. D) a balanced budget amendment would exert fiscal discipline on the federal government.
Expected utility theory predicts that individuals will fully insure in actuarily fair markets so long as their tastes are state-independent. How might adverse selection result in some individuals under-insuring?
What will be an ideal response?
List the various arguments against free trade
What will be an ideal response?
Specialization should be guided
A) by government regulations. B) comparative advantage C) by only technology. D) by only labor or technology.