Assume that an inflationary gap must be closed by reducing aggregate expenditures. If consumers refuse to cut spending on consumption and producers won't cut demand for investment goods, the President:
a. can do nothing.
b. must build more roads.
c. must borrow from Wall Street.
d. must increase Social Security expenditures.
e. must cut government spending.
e
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How would each of the following events likely change measured GDP?
a. The sale and use of marijuana is legalized. b. There is an increase in sales of counterfeit video games. c. A foreign-owned furniture manufacturer opens a production facility in South Carolina. d. More people choose to forgo their lawn maintenance services to take care of their own yards.
The trade-off of saving the spotted owls in the Pacific Northwest was
A) the loss of salmon in the region. B) the increase in the number of marbled murrelets. C) the loss of logging activities by lumber companies. D) none.
The theory of comparative advantage suggests that trade should happen
a. between economies with small differences in opportunity costs of production. b. between economies with large differences in opportunity costs of production. c. between economies with large differences in specialization. d. between economies with small differences in specialization.
Wealth refers to
A. A flow of money over time. B. The way personal income is divided among households. C. The market value of assets people own. D. The purchasing power this year.