The process of producing and accumulating capital goods is called:
A. money capital.
B. depreciation.
C. investment.
D. consumption.
Answer: C
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Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except
A) engage in mutually beneficial trade with other nations. B) produce a combination of goods that lies outside its own production possibilities frontier. C) consume a combination of goods that lies outside its own production possibilities frontier. D) increase the variety of products that it can consume with no increase in resources.
Marketable government securities consists of Treasury bills,
A) Treasury notes, and U.S. savings bonds. B) Treasury notes, and Treasury bonds. C) Treasury bonds, and federal funds. D) U.S. saving bonds, and federal funds.
Which of the following terms identifies something that macroeconomists would study but that microeconomists would NOT?
A) incentives B) resources C) rationality D) aggregates
Which of the following has been the most likely effect of the Fed's credit policy?
A. The scope of asymmetric information problems in the banking industry has reduced. B. The money multiplier and the link between the money supply and the economy have become unstable. C. The federal funds rate and the discount rate have dropped to negative levels. D. Banks and other financial institutions have taken more time to recover from the 2008-2009 financial meltdown.