Answer the following statements true (T) or false (F)
1. A stable economy results whenever planned injections equals planned leakages.
2. The production of goods and services generates income.
3. Spending on capital goods is referred to as investment.
4. Planned investment may differ from actual investment.
5. Accumulation and depletion of inventories affect the circular flow of income.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
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The Public Broadcasting Service and National Public Radio are examples of
A. nonprofit government-funded organizations. B. private for-profit companies. C. government agencies. D. private nonprofit organizations.
Figure 14.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that 50% of used refrigerators in the market are lemons (low quality), how many plums (high quality) will be supplied by sellers?
A. 50 B. 125 C. 175 D. 250
The federal income tax on wages is the largest source of revenue for the federal government
Indicate whether the statement is true or false
Suppose the United States is experiencing a balance of payments surplus. To prevent the exchange rate from appreciating, the U.S. Treasury must
A) sell dollars and buy foreign currency. B) sell both dollars and foreign currency. C) buy both dollars and foreign currency. D) sell foreign currency and buy dollars.