Which of the following examples of household spending is categorized as investment rather than consumption?
a. expenditures on durable goods such as automobiles and refrigerators
b. expenditures on intangibles items such as medical care
c. expenditures on new housing
d. All of the above are correct.
c
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If the rural wage is 4 and the formal urban wage rate is 10, there will be rural to urban migration if the formal urban unemployment rate is
(a) 50% (b) 60% (c) 70% (d) all of the above
In economics, man-made resources such as tools, equipment, and structures that are used to produce other goods and services are referred to as
a. consumer goods. b. capital. c. marginal goods. d. infrastructures.
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and GDP Price Index rises. b. The real risk-free interest rate falls, and GDP Price Index falls. c. The real risk-free interest rate rises, and GDP Price Index falls. d. The real risk-free interest rate and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The price received by sellers in a market will decrease if the government
a. imposes a binding price floor in that market. b. decreases a binding price ceiling in that market. c. decreases a tax on the good sold in that market. d. increases a binding price floor in that market.