Saving and taxes are considered leakages from the spending stream
a. True
b. False
A
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Hong Kong is an example of an economy that
A) does not experience economic growth because it is not a democracy. B) experiences economic growth in spite of the fact that is lacks democratic freedom. C) grows more slowly than other Asian countries because property rights are not valued. D) needs to promote investment so that economic growth can occur. E) lacks economic freedom and therefore experiences the slowest economic growth of all developed economies.
The cost of using an additional unit of an input is called the
A) marginal revenue product. B) marginal physical product cost. C) marginal factor cost. D) marginal product of labor.
The main function of the Federal Reserve System is to:
A. supervise the operation of member banks. B. control the money supply. C. serve as the fiscal agent for the federal government. D. clear checks from member banks.
If the demand curve is perfectly elastic, the burden of a tax on suppliers is borne:
A. partly by the suppliers and mostly by the consumers if the supply curve is elastic. B. mostly by the suppliers and partly by the consumers if the supply curve is inelastic. C. entirely by the consumers. D. entirely by the suppliers.