Which of the following describes the effect of government spending?
A. Govt spending increases, taxes increase, disposable income increases, consumption decreases, AD decreases, price and quantity decrease
B. Govt spending increases, money supply increases, income decreases, investment increases, AD increases, price and quantity decrease
C. Govt spending increases, AD increases, price and quantity increase
D. Govt spending increases, consumption increases, AD increases, price and quantity decrease
Ans: C. Govt spending increases, AD increases, price and quantity increase
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Answer the following statements true (T) or false (F)
1) If a firm purchases an input that is jointly produced with another good, changes in the demand for the other good will have no effect on the price of the input. 2) It is profit-maximizing for managers to locate their stores close together in areas that are frequented by low-income consumers. 3) Stores that are located in areas that offer a low transaction cost to consumers are more likely to be able to charge higher prices than stored located in areas with high transaction costs. 4) To maximize profit, a manager of a large chain of stores that are located throughout the United States needs to determine the average value of their consumers' time and transportation costs and locate each store in areas based on the average value. 5) A consumer's total transportation costs do not include the time the consumer spends in the store.
Susan Greenberg, who works in a typewriter factory, becomes unemployed because people start buying personal computers instead of typewriters. Susan can best be described as:
a. frictionally unemployed. b. structurally unemployed. c. cyclically unemployed. d. not part of the labor force. e. a discouraged worker.
Actual investment is the:
A. spending households engage in based on forecasted budget. B. amount that firms actually allocate to inventory accumulation. C. investment a firm makes into stocks and bonds in order to generate profit. D. amount that firms really allocated to new capital resources and inventory accumulation.
Which tax form would you select for a Partnership?
a. Form 1120 b. Form 1120S c. Form 1065 d. Form 1040S