Which of the following scenarios is an example of an investment in physical capital?
A. A chemical firm employs chemists to develop new chemicals.
B. A firm pays for workers to take college classes.
C. A firm purchases new equipment for a manufacturing process.
D. A firm trains workers to operate new machinery.
Answer: C
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The Fed's first forward guidance in 2009 was framed in terms of keeping interest rates low
A) for an extended period. B) at least until a particular date in the future. C) based on outcomes for the unemployment rate and inflation rate. D) until the next Presidential election.
What involves taking the risks that are necessary to seek out business opportunities?
a. Invention b. Benchmarking c. Averaging d. Entrepreneurship
Suppose that the federal government imposes a price floor (support price) in the milk market at a price of $3 per gallon. If market quantity demanded at $3 is 1 billion gallons, and if market quantity supplied is 1.5 billion gallons, then which of the following is true?
a. There is a surplus of 1 billion gallons of milk, and the federal government will buy 1.5 billion gallons to maintain the $3 price. b. There is a shortage of 500 million gallons of milk, and the federal government will buy 1 billion gallons to maintain the $3 price. c. There is a shortage of 500 million gallons of milk, and the federal government will buy an additional 500 million gallons to maintain the $3 price. d. There is a surplus of 500 million gallons of milk, and the federal government will buy this 500 million gallons to maintain the $3 price.
Federal Spending in 2016 was
A. $4 billion. B. $400 trillion. C. $40 trillion. D. $4 trillion.