Which of the following is an example of a transfer payment?
a. wages and salaries paid to the employees of the Internal Revenue Service
b. purchase of automobiles by a local police department
c. agriculture subsidies paid to farmers
d. salaries paid to the college professors of state-operated universities
C
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Suppose that investment is increasing. Most of the increase in real GDP that results is due to ________.
A. an increase in government purchases B. an increase in consumption C. additional increases in investment D. an increase in net exports
During a period of disinflation the purchasing power of the dollar _____.
Fill in the blank(s) with the appropriate word(s).
An empirical study compared the price of eyeglasses in states that restricted advertising by optometrists with those that did not.The study revealed:
a. That the average price of eyeglasses in states where advertising was restricted was higher than the average price in states were advertising was not restricted b. That the average price of eyeglasses in states where advertising was not restricted was higher than the average price in states where advertising was restricted c. That the average price of eyeglasses did not differ between states where advertising was restricted and those in which advertising was not restricted d. That the greater the level of advertising, the higher the average price of eyeglasses
Which of the following is a nonmarket good?
A) the corn you grow in your home garden and consume B) the clothes you sew and sell to a neighbor who pays you by writing you a check C) the self-portrait hanging in your den D) a and c E) a, b, and c