Question: I'll answer the remaining questions. Question 1 2 The correct answer is A . Business demand firms will cut production to keep from accumulating inventories.

I'll answer the remaining questions.
Question 12
The correct answer is A. Business demand firms will cut production to keep from accumulating inventories.
When aggregate demand falls short of current output, businesses will reduce production to avoid accumulating unsold inventories.
Question 13
The correct answer is D. The market for fast foods.
Market failure occurs when the market fails to allocate resources efficiently. The market for fast foods is likely to be competitive, with many firms operating, and is less likely to require state regulation or intervention. The other options involve externalities (A), public goods (B), or merit goods (C), which may require government intervention.
Question 14
The correct answer is D. Public corporations form part of general government.
General government includes central, provincial, and local governments, but not public corporations, which are separate entities.
Question 15
The correct answer is D. Tax rates should be raised.
According to Keynesian economists, during an economic boom, the government should increase taxes to reduce aggregate demand and prevent inflation.
Question 16
The correct answer is C. i, iii and iv.
i. Keynesians believe in using macroeconomic tools to stabilize the economy.
iii. Supply-siders emphasize incentives to work, save, and invest.
iv. Classical economists believed in the separation of the monetary and real sectors, whereas other schools recognize the short-run impact of monetary policy on the real economy.
Question 17
The correct answer is C. Increase.
Printing more money and increasing the money supply can lead to inflation, causing prices to rise.
Question 18
The correct answer is D. The promotion of exports and investment.
Promoting exports and investment can stimulate economic growth, leading to job creation.
Question 19
The correct answer is D. Japan's net capital outflow must be negative.
When Japan exports more than it imports, it runs a trade surplus, which implies a net capital outflow (foreign investment) must be negative to balance the accounts.
Question 20
The correct answer is C. McDonald's builds a restaurant in Moscow.
Foreign direct investment (FDI) involves establishing or acquiring a business operation in a foreign country, such as McDonald's building a restaurant in Moscow.
Question 21
The correct answer is C.1.25 kilograms of Japanese rice per kilogram of UK rice.
To find the real exchange rate, we need to compare the price of rice in both countries:
UK: 1 kg of rice =2
Japan: 1 kg of rice =250 yen
Nominal exchange rate: 100 yen/
Convert the price of Japanese rice to pounds: 250 yen /100 yen/=2.5
Now, compare the prices: 1 kg of UK rice =2,1 kg of Japanese rice =2.5
The real exchange rate is: 1 kg of UK rice 1.25 kg of Japanese rice (2.5/2)
So, the real exchange rate is approximately 1.25 kilograms of Japanese rice per kilogram of UK rice.

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