Which of the following can be considered an income risk?

a. Recession causing loss of pay to employees working in a particular industry
b. Fall in employee turnover affecting company profits
c. Economic growth resulting in demand-pull inflation
d. Stock market boom encouraging investment in risky assets

A

Economics

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Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil. We can conclude that

A) Honduras has a lower opportunity cost of producing bananas relative to Brazil. B) Brazil has an absolute disadvantage in producing bananas relative to Honduras. C) Labor costs are higher for banana producers in Brazil than in Honduras. D) Honduras also has an absolute advantage in producing bananas relative to Brazil.

Economics

If a budget is cyclically balanced, the government should run a surplus when the economy experiences an expansionary gap

a. True b. False Indicate whether the statement is true or false

Economics