If a country increased the production of its capital goods, then
A) the more consumption of goods we can have today.
B) the less consumption we can have today, but we will have more in the future.
C) the more unemployed resources there will be in the future.
D) the more unemployed resources there are today.
B
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A long-term loan that is given to a firm is known as a
A) share of stock. B) bond. C) dividend. D) random walk.
A country benefits from trade if it is able to obtain a good from a foreign country by giving up more of other goods than it would have to give up to obtain the good at home
a. True b. False Indicate whether the statement is true or false
Which of the following is not a reason that the cost of owner-occupied housing is difficult to measure?
a) Housing is both an investment and consumption good b) Buying a house is a one-off expenditure, but the benefits of home ownership are spread over many years c) Owner-occupiers do not pay rent which is the most straightforward measure of the cost of housing d) House purchase, when it occurs, is too large a share of total spending e) Many countries do not have a well developed rental market from which to calculate imputed rents for owner occupiers
The idea that a large national debt is "mortgaging the future of our children and grandchildren" is misleading because:
A. it is the Federal Reserve that will be responsible for making interest payments on the debt. B. future generations will have to bear the opportunity costs of the resources that are used today. C. future generations will not be liable for the interest obligations of the national debt. D. future generations will inherit the interest income as well as the interest obligations.