Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year
After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars?
A) B is 12 times larger, or $230,000 larger on a real per capita basis.
B) B is 8 times larger, or $175,000 larger on a real per capita basis.
C) B is a little less than 2 times smaller, or almost $20,000 smaller on a real per capita basis.
D) B is a little over 6 times larger, or almost $60,000 larger on a real per capita basis.
D
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The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplier to fall. d. Monetary base to rise.
When the Fed purchases government bonds it _____ reserves and ____ the money supply.
A) decreases; increases B) increases; decreases C) decreases; decreases D) increases; increases
When high-school and college graduates apply for jobs in the labor markets,
A. Job applicants are the "buyers" while employers are the "sellers". B. Job applicants are the "sellers" while employers are the "buyers". C. Job applicants and employers are both "sellers". D. Job applicants and employers are both "buyers".
The self-interest model of government:
A. suggests that government officials are selfish. B. explains why there are limits on government taxation and spending. C. shows why some government projects take place even if the costs exceed the benefits. D. All of these are correct.