A transfer payment occurs when the government
a. transfers money between federal banks and state banks
b. shifts income from one group of people to another
c. buys goods and services
d. transfers money from one group of workers to another group of workers
e. buys goods to transfer them to other groups of consumers
B
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John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. The expected value of John's earnings if he chooses to expand is:
A. $320,000 B. $230,000 C. $900,000 D. $140,000
The amount of U.S. exports to the rest of the world is primarily determined by _____
a. the real disposable income in the United States b. the real disposable income in other nations c. the real interest rate in other nations d. the real interest rate in the United States e. the government budget deficits in other nations
Agraria sends wheat to Cyberia in exchange for computers and technology goods. This is an example of
A. unidirectional trade. B. joint venture. C. barter. D. monetary exchange.
In a certain year the aggregate amount demanded at the existing price level consists of $100 billion of consumption, $40 billion of investment, $10 billion of net exports, and $20 billion of government purchases. Full-employment GDP is $200 billion. To
obtain full employment under these conditions, the government should: A. encourage personal saving by increasing the interest rate on government bonds. B. decrease government expenditures. C. reduce tax rates and/or increase government spending. D. discourage private investment by increasing corporate income taxes.