An increase in saving
A. decreases the amount of resources available for investment.
B. increases the amount of resources that can be devoted to the purchase of capital goods.
C. reduces real GDP by decreasing consumption.
D. increases a country's present standard of living.
Ans: B. increases the amount of resources that can be devoted to the purchase of capital goods.
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If an economy produces 2,000 units of output with a price level of $1 and the money supply (M) is $1,000, velocity is:
A. 2. B. 500. C. 50. D. 5.
Suppose that Pat has the legal right to fly an extremely noisy airplane over Chris's apartment and that he values that right at $1,000 per year. Chris would be willing to pay $800 per year to avoid the noise. In this case,
a. Pat will be required to eliminate the overflight b. Chris will move to a new apartment c. Pat and Chris have a powerful incentive to eliminate the overflight because both would benefit from it d. some governmental agency will step in to require Pat to choose a different flight pattern e. there is no basis for an agreement to eliminate the overflight
In the United States, all ozone-depleting substances were phased out by 2005 with the exception of
a. CFCs b. halons c. methyl bromide d. HCFCs e. none of the above
The end of the Cold War is generally marked by the fall of the Berlin Wall in
A) 1961. B) 1969. C) 1979. D) 1989. E) 1994.