Economists use the word investment to refer to the portion of income that is:
A. spent on productive inputs, such as factories, machinery, and inventories.
B. not immediately spent on consumption of goods and services.
C. placed in an individual's savings account.
D. in any interest-bearing account.
A. spent on productive inputs, such as factories, machinery, and inventories.
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Throughout history, governments have used price controls to
A. protect buyers. B. protect sellers. C. serve the “public interest.” D. All of these responses are correct.
You have a bond that you can redeem for $10,000 one year from now. The interest rate is 10 percent (0.10) per year. How much is the bond worth today?
a. $9,090.91 b. $10,000.00 c. $8,264.46 d. $9,523.81 e. $9,000.00
The theory of efficiency wages explains why
a. setting wages at the equilibrium level may increase unemployment. b. it may be in the best interest of firms to offer wages that are above the equilibrium level. c. the most efficient way to pay workers is to pay them according to their skills. d. it is efficient for firms to set wages at the equilibrium level.
The Eurocurrency market is a retail, rather than wholesale, market.
a. true b. false