If consumption spending is larger than disposable income,
a. saving is positive.
b. dissaving occurs.
c. saving is exactly zero.
d. a depression results.
e. this cannot occur.
b
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When an externality is present in a market, and correcting it increases the efficiency of the market, we can conclude it is a:
A. negative externality. B. positive externality. C. network externality. D. either a negative or a positive externality.
Federal Reserve Board Chairmen Paul Volcker, as well as later Fed chairs, focused on which of the following as their main goal of monetary policy?
A) high employment B) price stability C) economic growth D) stability of financial markets
The government transfer program makes the distribution of income more equal.
Answer the following statement true (T) or false (F)
Which of the following is a function of the U.S. federal government?
A) deciding for whom firms should produce goods and services B) distributing private goods and services C) providing the legal and social framework for economic activity D) determining what wages firms will pay their workers. E) deciding how much to produce of private goods and services