Government programs aimed at stimulating personal savings:
A. increase welfare if people discount the future too heavily.
B. decrease economic efficiency if people have impulse control problems.
C. help mitigate regression to the mean in most cases.
D. are designed to take advantage of the flaws in the availability heuristic.
Answer: A
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Colonial production of tobacco satisfied England's mercantilist interests because:
a. it provided a substitute for imported Spanish tobacco. b. its poor quality discouraged English youth from smoking. c. it provided a good that could be taxed by the English. d. it ensured that the colonists would remain dependent on England for food.
If Taiwanese workers can produce all goods at lower wages than American workers, then
a. Americans can still gain by trading with Taiwan. b. Americans can only lose if they import from Taiwan. c. Taiwan can only lose if it trades with America. d. there are no gains from trade that are possible in this case. e. Americans should be self-sufficient.