Which of the following types of government spending is included in the calculation of GDP?
A. Federal, state, and local government spending for any purpose.
B. Federal spending only.
C. Federal, state, and local spending on transfer payments only.
D. Federal, state, and local government spending on goods and services only.
Answer: D
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Suppose an economy has a balanced federal budget, and a large increase in oil prices plunges the economy into a recession. Tax revenues will ________ and expenditures on transfer payments will ________, resulting in a budget ________
A) increase; increase; surplus B) fall; increase; deficit C) increase; fall; surplus D) fall; fall; deficit
Banks may borrow from or lend to another bank in the Federal Funds market. A loan of excess reserves from one bank to another bank is recorded as a(n) ________ for the borrowing bank and a(n) ________ for the lending bank
A) asset; asset B) asset; liability C) liability; liability D) liability; asset
Describe the comparable worth controversy?
Which of these types of costs can be ignored when an individual or a firm is making decisions?
a. sunk costs b. marginal costs c. variable costs d. opportunity costs