Which of the following is an example of government discretionary spending?
A. Social Security retirement payments
B. Medicare benefits for the elderly
C. defense spending
D. net interest paid on government debt held by the public
Answer: C
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Sharon buys some common stock in 1990 for $10,000 and sells it in 2000 for $15,000. During the same period, prices have risen by 75 percent. The net result of Sharon’s stock purchases is that she will
A. pay no taxes because she earned negative real capital gains. B. lose purchasing power and have to pay taxes anyway. C. earn a real capital gain of $5,000 plus 75 percent. D. earn a real capital gain of $15,000 minus 75 percent.
Assume that consumption in the United States is $9,000 billion in 2009. If the MPC is 0.8 and disposable income increases by $1,000 billion in 2010, then the level of consumption in 2010 will be
A. $10,000 billion. B. $9,800 billion. C. $9,000 billion. D. $7,200 billion.
All points inside the production possibilities curve indicate
A) a lack of sufficient supply. B) inefficiency in production. C) the law of increasing relative cost. D) the law of decreasing relative cost.
Common ownership may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield
a. True b. False Indicate whether the statement is true or false