Government purchases of goods and services are
A. exhaustive because they directly absorb or employ resources and account for production.
B. neither exhaustive or nonexhaustive because of the tax revenues that finance these purchases.
C. nonexhaustive because they do not directly absorb resources and account for production.
D. both exhaustive and nonexhaustive because in some cases they do directly absorb resources or account for production and in other cases they do not.
Answer: A
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Refer to Figure 28-2. Suppose the economy is at point C in the figure above. If workers adjust their expectations of inflation, which of the following will be true?
A) The natural rate of unemployment is 6%. B) Workers and firms expect inflation to be 1%. C) The short-run Phillips curve will shift to the left. D) The short-run Phillips curve will shift to the right. E) The economy will move from C to A.
When secondary market buyers and sellers of securities meet in one central location to conduct trades the market is called a(n)
A) exchange. B) over-the-counter market. C) common market. D) barter market.
A market basket:
A. is a tool devised to track how changing prices affect consumers. B. includes all the goods and services produced in an economy. C. includes all the goods and services consumed in an economy, including imports. D. includes all the goods and services consumed in an economy, including net exports.
Which of the following is the primary source of cross-country differences in the real earnings of workers?
a. differences in natural resource endowments b. differences in output per worker c. differences in the average number of hours worked d. differences in the share of workers that are members of a labor union e. access to modern technology