In a closed economy, the supply of goods and services must be equal to:
A. consumption.
B. consumption + investment.
C. consumption + investment + government purchases.
D. consumption + investment + government purchases ? taxes.
Ans: C. consumption + investment + government purchases.
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Current offers to purchase or sell scarce goods take account of the wants of future generations
A) if government intervenes to give the future a current voice. B) if people are able to predict future prices. C) only if people are concerned for the welfare of others yet unborn. D) only rarely because people are predominantly selfish.
Suppose a country had a smaller increase in debt in 2011 than it had in 2010 . Then other things the same, we would expect
a. lower interest rates and investment in 2011 than in 2010. b. lower interest rates and greater investment in 2011 than in 2010. c. higher interest rates and greater investment in 2011 than in 2010. d. higher interest rates and lower investment in 2011 than in 2010.
Which of the following explains the slope of the demand curve for labor?
a. the marginal productivity theory b. the law of diminishing marginal product c. the practice of featherbedding d. the result of monopsony
A currency system in which exchange rates are determined in free markets is called a:
A. fixed exchange rate system. B. gold standard. C. flexible exchange rate system. D. All of these