Government purchases include all of the following except:
A. the purchase of new military hardware by the U.S. Army.
B. the construction of a new court house built by a county government.
C. Social Security benefits paid by the federal government.
D. the salary paid to an elementary school teacher employed by a local public school district.
Answer: C
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If Joe receives an increase in his wage rate and decides to decrease his hours worked, the
A) substitution effect and the income effect must be equal. B) substitution effect must exceed the income effect. C) income effect must exceed the substitution effect. D) substitution effect must be zero.
In a competitive economy, the questions of what, how, and for whom to produce tend to be regulated by
A. the government. B. businessmen. C. the price system. D. workers.
Which of the following is not an antitrust enforcement option?
a. c and e b. nationalization c. laissez-faire d. break ups e. regulation
Present discounted value refers to the
A. Value today of future payments adjusted for inflation. B. Value today of future payments adjusted for interest accrual. C. Value today of future payments adjusted for risk. D. Future value of today's dollars.