Answer the following statements true (T) or false (F)
1. The government is like business firm in that it provides goods and services to households and businesses.
2. Transfer payments are "exhaustive" in that they directly absorb resources, whereas government purchases are "nonexhaustive".
3. When the government is doing "deficit spending," it will be increasing its total debt.
4. The largest category of Federal government expenditures is national defense.
5. Payroll taxes account for more than one-third of Federal tax revenues.
1. T
2. F
3. T
4. F
5. T
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In Figure 3-4 above, the shift from Ap0 to Ap1 could have been caused by a ________ in T of ________
A) fall, 300 B) fall, 180 C) fall, 500 D) rise, 300 E) rise, 500
The slowing of the American economy in 2008–2009 gave businesses a strong incentive to raise capital investment.
Answer the following statement true (T) or false (F)
The federal funds rate is the interest rate paid when
a. the Federal Reserve makes loans to member banks. b. taxpayers pay overdue taxes. c. one bank borrows reserves from another bank. d. banks make loans to the federal government. e. the federal debt is refinanced.
Which of the following fundamental resources is the basis of labor?
a. Capital b. Natural resources c. Time d. Profit e. Entrepreneurial ability