An activity is productive if it
What will be an ideal response?
creates wealth.
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Last year the price of corn was $3 per bushel and the quantity of corn demanded was 8 million bushels. This year the price of corn is $4 per bushel and the quantity of corn demanded is 7 million bushels
Assuming that the demand curve has not shifted, what is the price elasticity of demand for corn? (Use the midpoint formula.) A) 1 B) 0.47 C) 2.14 D) 0.29
If all U.S. government bonds are held by U.S. citizens, then:
a. the bondholders will not earn interest on the bonds. b. there is no tax liability for funding the U.S. government's debt. c. there is no net change in national wealth when the national debt changes. d. the tax liability for funding the debt is not offset by the interest earnings of bondholders. e. the tax rates are not increased to repay the outstanding debts.
Financial instruments used primarily as stores of value do not include:
A. a bank loan. B. asset backed securities. C. U.S. Treasury bonds. D. a car insurance policy.
Most economists agree that modest inflation is desirable over zero inflation because:
A. it allows a margin of error for those deciding on the money supply. B. it allows the Fed to more easily engage in expansionary monetary policy. C. it helps firms to more easily adjust real wages. D. All of these statements are true.