Related to the Economics in Practice on page 360: Suppose you see the following advertisement for a vacation rental. "Beautiful condo on the Island of Maui (Hawaii). Sleeps 5. Great landscaped grounds, pool, and BBQ area. Lanai overlooks pool. $1,500 per week." It is likely true that the condo
A. doesn't have a view of the pool.
B. has an actual rental rate of $1600 per week.
C. is not on the island of Maui.
D. has no view other than the pool (i.e. no ocean, mountain, or city view).
Answer: D
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Which country is the United States' largest trading partner?
a. Canada b. Japan c. Great Britain d. Mexico e. South Korea
Which of the following is not a major responsibility of the Fed?
A) supplying the economy with paper money B) providing check-clearing services C) supervising member banks D) serving as fiscal agent for the Treasury E) All of the above are major responsibilities of the Fed.
Which is not a criticism of the marginal productivity theory of distribution?
A. It assumes that the existing distribution of ownership factors is fair and just when it may not be. B. It does not tell us much about real policy matters. C. A factor’s MRP does not in any way correspond to productive effort. D. It is inconsistent with most empirical observations.
Using the standard 45° line diagram, how does a decrease in investment spending effect the expenditure schedule?
A. It increases the slope of the expenditure schedule. B. It decreases the slope of the expenditure schedule. C. It shifts the expenditure schedule downward. D. It shifts the expenditure schedule upward.