Which of the following is an example of a positive economic statement?
A. In order to reduce the budget deficit, tax rates should be increased.
B. If gas prices fall, consumers should purchase more gas.
C. If payroll taxes are raised, then the government budget will show a surplus.
D. In order to increase employment, the minimum wage must be decreased.
Answer: C
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The United States is a ________ nation because it pays ________ in interest to the rest of the world than it receives in ________ from the rest of the world
A) creditor; more; interest B) debtor; more; interest C) debtor; less; cash D) debtor; more; cash E) debtor; less; interest
The above figure gives your budget line between CDs and magazines. The slope of the budget line is ________ CD per magazine
A) 1/2 B) -1/2 C) -1 D) -2
Which of the following is a way the government can stimulate saving?
A. Decrease interest rates B. Increase taxes C. Offering tax incentives for retirement accounts D. There is nothing the government can do to stimulate saving.
We calculate the amount of physical capital in an economy by adding up the value of all:
A. skills and expertise of the working age population. B. skills and expertise of all employed people. C. tools, equipment, and structures. D. technological capabilities used in production.