Which of the following statements is correct?
a. All items that are included in M1 are included also in M2.
b. All items that are included in M2 are included also in M1.
c. Credit cards are included in both M1 and M2.
d. Savings deposits are included in both M1 and M2.
a
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Based on the data in the table above, after which worker is hired do diminishing marginal returns begin?
A) the first B) the fifth C) the sixth D) the ninth
The benefit principle is the idea that people should pay taxes based on the benefits they receive from the services those taxes provide
a. True b. False Indicate whether the statement is true or false
It is commonly argued that national defense is a public good. Nevertheless, the weapons used by the U.S. military are produced by private firms. We can conclude that
a. resources would be used more efficiently if the government produced the weapons. b. resources would be used more efficiently if private firms provided national defense. c. weapons are rival in consumption and excludable, but national defense is not rival in consumption and not excludable. d. national defense is rival in consumption and excludable, but weapons are not rival in consumption and not excludable.
Imagine that you are an economist and a believer in rational expectations theory. The chairwoman of your country’s central bank is considering announcing a series of three increases in the money supply over the next year. Her hope is that this will drive real GDP higher. What would you advise the chairwoman?
a. Proceed with the announcement. b. Proceed with the announcement but increase the money supply by smaller amounts once a month. c. Do not increase the money supply as it will boost inflation without improving real GDP. d. Do not increase the money supply as it will reduce real GDP instead of improving it.