If you decide not to spend $1,000 you earned at your summer job but instead intend to buy shares in a mutual fund, in terms of aggregate economic accounting you would be:
A. saving.
B. transferring.
C. consuming.
D. investing.
Answer: A
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Amanda lives in France. She received $5,000 as a wedding gift from a relative living in the U.S. This is an example of a(n) ________
A) factor payment to France B) transfer payment to France C) import by the U.S. D) export by the U.S.
In a perfectly contestable market in the long run, each firm
A. produces at the minimum point on its long-run average total cost curve. B. earns a profit below its opportunity cost of capital. C. avoids making capital expenditures. D. All of the responses are correct.
If robotics and factory automation become more widespread in an industry and all else is held constant:
A. both the demand for labor in that industry and the wage rate should decrease. B. the demand for labor should increase in that industry and the wage rate should decrease. C. both the demand for labor in that industry and the wage rate should increase. D. the demand for labor should decrease in that industry and the wage rate should increase.
The marginal tax rate is
A. the percentage of all dollars of income paid in tax. B. the percentage of the last dollar of income paid in tax. C. the percentage of all dollars of income paid in tax and the percentage of the last dollar of income paid in tax. D. the percentage of all taxable dollars of income paid in tax.