Most individuals borrow:
A. using a financial intermediary because it lowers the cost of borrowing.
B. using a financial intermediary, but would save money if they financed directly.
C. without using financial intermediaries, preferring credit cards.
D. directly without the use of a financial intermediary.
Answer: A
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Money is defined as
A) a by product of a barter economy. B) any financial instrument that is backed by gold. C) anything people generally accept in exchange for goods and services. D) a person's net worth.
Given the data in Table 6.1, if the workers who are "not employed and not looking for work" were counted as not employed and in the labor force, the unemployment rate of Metropolis would be approximately
A) 4 percent. B) 7 percent. C) 9 percent. D) 10 percent.
In contrast with nominal GDP, real GDP refers to nominal GDP:
a. minus exports. b. minus personal income taxes. c. corrected for price changes. d. corrected for depreciation.
If the government increased the income tax on the rich and increased transfer payments to the poor, the most likely result would be
a. to increase investment in the economy b. the eradication of poverty c. a rise in the Gini coefficient d. an increase in the economy's rate of economic growth e. a decline in the economy's rate of economic growth