Suppose Italy currently lends 1.5 billion euros to other nations and borrows 1 billion euros from other nations. Italy is definitely a
A) net borrower.
B) net lender.
C) creditor nation.
D) debtor nation.
B
You might also like to view...
Somebody steals silverware from the dinner table at a nice restaurant
You question them and they justify their behavior by saying, "The restaurant management knows customers steal–they raise the price of their meals and drinks to cover the additional costs of stolen items. Since they pass on the higher costs to all of us who haven't stolen, I think it is only fair I finally get my share of the silverware." The economist would view the above statement as: A) incorrect, because even though people stole silverware, it doesn't make it any more profitable to raise prices. B) correct, because what's fair is fair. C) correct, because economics champions such selfish behavior. D) an ethical problem, and it has nothing to do with economics.
Explain the terms "paternalism" and "consumer sovereignty."
What will be an ideal response?