What are the three basic decisions that any household must make
What will be an ideal response?
Every household must make three basic decisions: (1) how much of each product, or output, todemand; (2) how much labor to supply; and (3) how much to spend today and how much tosave for the future.
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Net exports are negative when
A. imports exceed exports. B. depreciation exceeds exports. C. exports exceed imports. D. net exports exceed imports.
An increase in unearned income always creates a disincentive to work
Indicate whether the statement is true or false
Which of the following sentences about entrepreneurs stands true?
a. They tend to be risk-averse individuals. b. They are more frequently found in societies that support social conformity. c. They help achieve technological progress. d. They are more frequently found in the local population of the developing countries. e. They usually belong to the traditional elite class.
Answer the following statement(s) true (T) or false (F)
1. It is wise to purchase an artist's work when it is expected to appreciate in value, whether or not you like it. 2. Treasury bills are sold at face value and buyers received annual interest payments from the government. 3. The value of a productive asset is equal to the present value of the stream of dividends that it produces. 4. Deficit spending by the government is unwise, because taxpayers receive nothing of value when their taxes are used to make interest payments. 5. Without inflation the real interest rate is always greater than the nominal interest rate.