Which of the following would increase the government purchases component of U.S. GDP?
A. The U.S. federal government pays $3 billion in pensions to government workers.
B. The U.S. federal government pays $3 billion in interest to foreign holders of U.S. government bonds.
C. The U.S. federal government pays $3 billion in interest on the national debt.
D. The U.S. federal government pays $3 billion in salaries to soldiers in the military.
Answer: D
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If a rise in the price of oranges from $7 to $9 a bushel increases the quantity of bushels supplied from 4,500 to 5,500 bushels, the
A) supply of oranges is elastic. B) supply of oranges is inelastic. C) demand for oranges is elastic. D) demand for oranges is inelastic.
Consumers concentrate on public choices rather than private choices, because information and the time required to acquire and digest it are scarce
Indicate whether the statement is true or false
When the absolute price elasticity of demand equals 1, demand is
A) elastic. B) unit-elastic. C) inelastic. D) undetermined without more information.
Which of the following statements about the FDIC is correct?I.The deposit insurance premiums charged by the FDIC to a member bank fully reflect the riskiness of that bank's assetsII.The manner in which the FDIC is set up helps protect depository institutions from the rigors of true market competition
A. I only B. II only C. Both I and II D. Neither I nor II