Taylor has the following assets and liabilities:Two cars$15,000House$400,000Mortgage$300,000Cash$1,000Car loans$5,000Checking account balance$3,000Credit card balance$3,000Suppose that Taylor receives a $10,000 bonus from her employer. If she puts that money toward her mortgage, her wealth would ________; if she puts that money in her checking account, her wealth would ________.
A. increase to $121,000; decrease to $101,000
B. increase to $121,000; increase to $121,000
C. increase to $115,000; decrease to $95,000
D. increase to $115,000; increase to $115,000
Answer: B
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Suppose that in our economy: G = 1100, T = 900, S = 140, and NX = -90. How much of our final product is left for domestic firms to purchase for themselves?
A) 110 B) 200 C) 230 D) 50 E) 30
During the short-run period of the production process, a firm will be:
a. unable to vary any of its factors of production. b. able to vary some of its factors of production. c. able to vary all of its factors of production. d. able to vary the size of its plant.
The circular flow model is an abstract representation of the interaction between households and firms through the institutions of
a. government and financing outlets b. church and state c. property and law d. resource and product markets e. trade and conflict
From 2000 to 2010, the public sector share of total output
A. Trended up for state and local governments and down for the federal government. B. Trended up for state and local governments and up for the federal government. C. Remained stable for the federal government but trended up for state and local governments. D. Remained stable for state and local governments but trended up for the federal government.