Which is an example of barter?
A. A person trades a desk for a box of tools
B. A person buys clothes at a used clothing store
C. A gift of tuition money from parents to their children
D. The purchase of stock on the New York Stock Exchange
Answer: A
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Which of the following is a justification for infant industry protection?
a. The firm's learning must shift its average cost curve down over time so that it becomes competitive at world prices. b. The firm's output must increase so that it moves down along its average cost curve over time and becomes competitive at world prices. c. The firm's total cost curve must shift leftward over time so that it becomes competitive at world prices. d. The firm's learning allows it to produce more output and take advantage of increasing returns to scale.
A stock market boom which causes stock prices to rise should cause
A) a decrease in consumption spending. B) a decrease in wealth. C) an increase in consumption spending. D) a decrease in net export spending.