The amount of money in an economy that people can invest is equal to:
A. the value of their output.
B. their savings.
C. the value of consumption after gains from trade have been made.
D. their income.
Answer: B
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The imposition of price ceilings on a market often results in
A. an increase in investment in the industry. B. a persistent surplus in the market. C. the diversion of income toward black-market suppliers. D. lower prices being offered on the black market.
The Federal Reserve's buying and selling of bonds through their open market operations is an example of fiscal policy
Indicate whether the statement is true or false
The balance of trade is
A) the difference between exports and imports of goods and services. B) the difference between exports and imports of services. C) the summary record of a country's economic transactions with foreigners in a year. D) none of the above.
Exhibit 6-14 Cost curves
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In Exhibit 6-14, a firm finds that it is experiencing numerous managerial and information problems. The position of its short- and long-run average total cost curves suggest that it is operating at a production level:
A. between 0 and 1,000. B. between 1,000 and 2,000. C. between 2,000 and 3,000. D. between 3,000 and 4,000.