Which of the following is the best definition of what economists define as total income?
A. inheritance
B. payment for labor services, for use of other factors of production, and gifts and government transfers
C. payment for labor services
D. payment for labor services and for ownership of other factors of production
Answer: B
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One type of demander in the loanable funds market
A) lends funds to purchase financial capital. B) lends funds to purchase physical capital. C) wants physical capital in order to purchase financial capital. D) wants funds to purchase financial capital. E) wants funds to purchase physical capital.
If the price of a pumpkin rises and consumers' total expenditure on pumpkins increases, then the demand for pumpkins is inelastic
Indicate whether the statement is true or false
Government spending and taxation determine the position of the ________ curve and, where that curve intersects the vertical line at YN, the ________ target of monetary policy
A) IS, inflation rate B) IS, real interest rate C) LM, inflation rate D) LM, real interest rate
Jack is near retirement and worried that if the stock market falls he will not be able to wait to take his funds out, and will have to sell at the bottom of the market
Richard thinks the probability of a stock market downturn is the same, but he is only 40 and could therefore wait for another turnaround. They face the same budget line. Jack's risk/return indifference curve A) will be concave; Richard's will be convex. B) will be convex; Richard's will be concave. C) will be tangent to the budget line at a point to the left of Richard's. D) will be tangent to the budget line at a point to the right of Richard's. E) must still be tangent to the budget line at the same point as Richard's.