Which of the following items is counted as part of government purchases?
a. The federal government pays $2,000 in Social Security benefits to a retired person.
b. The city of Athens, Ohio pays $10,000 to a tree-trimming firm to trim trees along city boulevards.
c. The state of Nebraska pays $1,000 to help a low-income family pay its medical bills.
d. All of the above are correct.
b
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If you had a salary of $1,000,000, (a) how much Social Security tax would you have to pay and (b) How much Medicare tax would you have to pay?
What will be an ideal response?
Central banks can increase the money supply by:
a. Raising margin requirements. b. Selling government securities. c. Selling foreign exchange. d. Making discount loans. e. None of the above.
When the MPP of labor is zero, ceteris paribus,
A. Additional units of labor must be employed because other factors of production are being wasted. B. No further increases in output can be achieved by using additional units of labor. C. Employment can be increased only by offering a higher wage rate. D. MRP is at a maximum.
GDP understates the amount of economic production in the United States because it excludes:
A. Spending for the U.S. military B. Transfer payments C. Purchases of stocks and bonds D. Work performed by people for their own benefit