Financial markets are a key institution of growth because:
A. without them there would be no incentive to invest.
B. they move funds from those who save to those who invest.
C. they allow people to plan better for retirement.
D. without them people would not save.
Answer: B
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Some economists have predicted that recent developments in energy production in the United States are estimated to result in all of the following EXCEPT:
A) millions of new jobs B) the United States having the lowest energy costs of any country in the industrialized world C) a substantial increase in GDP over time D) significant increases in pollution
In an indifference curve/budget line diagram, at your consumer equilibrium, that is, your best affordable point, which of the following statements is CORRECT?
A) Any movement upward or downward on your budget line will move you to a less preferred point. B) Any movement upward or downward on your indifference curve will move you to a less preferred point. C) Your marginal rate of substitution is greater than the magnitude of the budget line by as much as possible. D) All of the above are correct.
An increase in individual income taxes ________ disposable income, which ________ consumption spending
A) decreases; increases B) increases; increases C) decreases; decreases D) increases; decreases
A financial market in which only short-term debt instruments are traded is called the ________ market
A) bond B) money C) capital D) stock