Which of the following is a positive economic statement?
A) We should raise the minimum wage in order to provide a decent wage for more people.
B) Consumers bought fewer cars when the relative price of cars increased.
C) The budget deficit has been rising in recent years.
D) Federal government spending ought to be curtailed.
E) b and c
E
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The cost of owning a government bond is ________, and the benefit of owning one is ________.
A. interest earned; that it is not very liquid B. that it is as liquid as cash; interest earned C. that it is highly liquid;interest charged D. interest charged; that it is not very liquid
Which statement is true?
A. State and local governments are expected to provide more and more services while their tax bases are limited. B. State and local governments are expected to provide less and less services while their tax bases are relatively unlimited. C. Public education has traditionally been the role of the federal government. D. None of these statements are true.
When the velocity of circulation equals 4 in 2010, this fact means that
A) consumers held four dollars in wealth for each dollar they spent in 2010. B) on average, each dollar of money in the economy purchased four dollars of goods and services in GDP in 2010. C) for each additional dollar of money injected into the economy, the price level rose 4 percent in 2010. D) real output of goods and services in GDP rose by four dollars for each additional dollar of money consumers saved.
If Q = K2L2 the MPK is
a. constant b. diminishing c. increasing