The conventions of national income accounting imply that saving and investment are equal for the economy as a whole and for individual households and firms
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is TRUE?
I. As the real interest rate increases, people increase the quantity they save. II. The supply of loanable funds curve is downward sloping. III. As disposable income increases, the supply of loanable funds curve becomes steeper. A) I and III B) II and III C) I only D) III only
Which of the following characteristics distinguishes oligopoly from other market structures?
a. Firms operating in an oligopoly are independent of each other. b. Firms operating in an oligopoly are interdependent. c. Oligopoly is the simplest of all the other market structures. d. An oligopolist does not face a downward-sloping demand curve. e. Entry into an oligopolistic market is easier than entry into a monopolistically competitive market.
Sophia has a business using no owned capital and makes an accounting profit of $52,000 a year. Sophia could have worked for Verizon Wireless with a pay of $35,000 a year, but she would not have had time to run her business. The economic profit from Sophia's business per year is
a. $87,000. b. $35,000. c. $17,000. d. -$17,000.
Bilateral monopoly exists when
A. there are two competing labor unions in a labor market. B. there is either a monopoly or a monopsony in the market. C. there is a monopoly and a monopsony in a market. D. a firm is both a monopolist in its output market and a monopsonist in the input market.