A transfer payment is a sum of money
A. spent by government for new goods and services.
B. shifted between members of a household.
C. given by government without a good or service in exchange.
D. moved between companies for goods and services.
E. required to pay taxes.
Answer: C
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The above table has the total product schedule for Joe's Barber Shop. Joe charges $6 per haircut. If the wage rate falls from $24 per worker to $12 per worker, the quantity of labor hired ________ and the new number of workers employed is ________
A) increases; 2 B) decreases; 2 C) increases; 5 D) increase; 3
If the United States is a "net borrower" from abroad,
A) national saving is less than domestic investment. B) net foreign investment must be positive. C) net capital flows must be negative. D) the United States must be exporting more than it is importing.
Which of the following was the result of the Federal Reserve's purchase of mortgage-backed securities in 2009?
a. MBS interest rates declined, home mortgage rates declined, and the Fed turned a profit on these operations. b. MBS interest rates declined, home mortgage rates declined, but the Fed had a loss on these operations. c. MBS interest rates increased, home mortgage rates declined, and the Fed turned a profit on these operations d. MBS interest rates increased, home mortgage rates increased, but the Fed had a loss on these operations
The price of a depletable natural resource last year rose more than expected. The most likely explanation is that
A. interest rates fell. B. an unexpected discovery of reserves was made. C. the major suppliers formed a cartel. D. price ceilings were established.