The amount of money in an economy that people can invest is equal to:
A. their income.
B. the value of their output.
C. the value of consumption after gains from trade have been made.
D. their savings.
D. their savings.
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Refer to Table 8-29. Based on the table above, what is national income for this economy?
A) $4,700 billion B) $4,000 billion C) $3,150 billion D) $2,450 billion
Empirical evidence from electric-power-producing firms suggests that the largest electric-power-producing firms are not natural monopolies because
A) the average cost curve for these firms is U-shaped. B) no electric-power-producing firms are natural monopolies. C) the largest firms enjoy economies of scale. D) the designation of natural monopoly can only be bestowed by the government.
Which statement about the economic impact of immigration is true?
a. State and local governments bear most of the costs of immigration. b. The federal budget pays the costs associated with educating immigrants. c. Immigration tends to have a positive effect on state and local budgets. d. Immigration tends to have a negative effect on the federal budget.
Exhibit 8-2 Consumption function
As shown in Exhibit 8-2, dissaving occurs:
A. at $5 trillion. B. between 0 and $4 trillion. C. where disposable income is greater than $4 trillion. D. at $8 trillion.