There has been some concern in the United States that people are not saving enough. This is a concern because
A) decreases in saving lead to decreases in labor productivity.
B) decreases in saving lead to decreases in investment.
C) decreases in saving lead to increases in the capital stock.
D) decreases in saving lead to increases in consumption in the future.
B
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If all of the returns to a resource are in the form of economic rent,
a. the price of that resource is determined exclusively by supply b. the price of that resource is determined exclusively by demand c. the price and quantity of that resource are determined exclusively by supply d. the price and quantity of that resource are determined exclusively by demand e. the equilibrium price is zero
A good example of land resources is
a. a steel billboard on an interstate highway b. water c. wood-based furniture d. machinery made from iron ore e. buildings located on prime real estate
Which of the following illustrates scarcity??
A. Megan wants to buy a CD that costs? $25 but has only? $10 to spend. B. Mary loves watching movies. C. Ron will travel to New York City for Thanksgiving. D. I got a new dress from my mother.
Refer to the given data. The commercial banking system has excess reserves of:
Answer the question on the basis of the following consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is 20 percent. All figures are in billions and each question should be answered independently of changes specified in all preceding ones.
A. zero.
B. $2 billion.
C. $5 billion.
D. $10 billion.