Spending on new goods and services out of a household's current income is
A. saving.
B. consumption.
C. investment.
D. savings.
Answer: B
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If real income rises faster than absorption during a time of economic expansion, then
A) the nation will experience a current account surplus. B) the nation will experience a current account deficit. C) national production will increase until absorption and income are balanced. D) the nation's imports must rise relative to its exports.
A major impact of the transatlantic telegraph was
A) a reduction in time required to complete a financial transaction between New York and London B) an increase in labor flows across the Atlantic. C) a decrease in trade barriers between the United States and Europe. D) an increase in trade conflicts between the United States and Europe. E) that nations abandoned the gold standard.
Most power in the Federal Reserve System is held by the
a. president and Congress. b. Secretary of the Treasury, who appoints the members of the Board of Governors. c. Board of Governors of the system. d. member banks of the system.
Which of the following statements is correct?
a. For most producers, the average total cost curve never crosses the marginal cost curve. b. The average fixed cost curve must eventually rise. c. The average total cost curve first rises, then falls with increased output. d. The marginal cost curve eventually rises with the quantity of output.