The amount earned by owners of the nation's factors of production is
A. the wages and fringe benefits received by the nation's workers.
B. private and government transfer payments.
C. total income.
D. all profits received by businesses.
Answer: C
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Refer to the above figure. Suppose the economy is in equilibrium at point A
If the Fed tries to stimulate the economy by undertaking an expansionary monetary policy action and this is not expected by the people in the economy, we would expect to see A) aggregate supply shifts up as people anticipate the effects of the expansionary monetary system. In the short run, real GDP falls to $13 trillion and the price level rises to 120. In the long run, real GDP returns to $14 trillion, and the price level increases further, to 150. B) aggregate demand increases but people would anticipate this, causing the short-run aggregate supply curve to shift up at the same time, with the new equilibrium of $14 trillion of real GDP and a price level of 100. C) aggregate demand increases, real GDP increases, and the price level increases in the short run. In the long run, people realize the real situation, causing the short-run aggregate supply curve to shift u
If the elasticity of demand for cigarettes is 0.4, then an increase in the price of a pack of cigarettes from $5.00 to $6.00 would reduce quantities demanded by about
a. 7 percent. b. 40 percent. c. 42 percent. d. 220 percent.
Why would someone contribute money to a 501(c) group?
A. to make a contribution using someone else's name or under a false identity B. to ensure that the money is used on advertising C. so that the funds would be matched by the federal government D. to avoid having his or her name disclosed as a donor
Legal entitlement to scientific discoveries, inventions, innovations and intellectual property
A) results in an equal distribution of income and profits. B) protects production on the basis of tradition, social customs and habits. C) encourages technological advancements. D) reduces the incentive to invest in research and development.