Which of the following statements about self-selection and immigration flows into the United States is false?
A. Negative selection occurs when the United States offers a greater return to skill at high skill levels than the source country.
B. Positive selection results in highly skilled workers coming to the United States.
C. Negative selection results in low-skilled workers coming to the United States.
D. High-skilled workers in foreign countries will not always choose to migrate to the United States.
E. If the flow of immigrants is currently positively selected, increasing the costs to immigration will likely make the future flow of immigrants even more positively selected.
Answer: A
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If all U.S. government bonds are held by U.S. citizens, then:
a. the bondholders will not earn interest on the bonds. b. there is no tax liability for funding the U.S. government's debt. c. there is no net change in national wealth when the national debt changes. d. the tax liability for funding the debt is not offset by the interest earnings of bondholders. e. the tax rates are not increased to repay the outstanding debts.
A decrease in demand means that quantity demanded falls
A. at least one price. B. at a few prices. C. at most prices. D. at all prices.
Concerning the covering of exchange rate risks, assuming that a depreciation of the domestic currency is feared, one can say that there is an incentive for
A. monetary authorities to rush to cover their future needs. B. importers to rush to cover their future needs. C. both exporters and importers to rush to cover their future needs. D. exporters to rush to cover their future needs.
Which of the following is an objective of fiscal policy?
A) high rates of economic growth B) discovering a cure for AIDs C) energy independence from Middle East oil D) health care coverage for all Americans E) homeland security