Terri is enrolled in her first economics course. She is required to give a presentation about the circular flow. Which of the following statements should she include in her presentation?
A) Households choose the amount of the factors of production to provide the firms.
B) Firms choose the amount of the factors of production to provide households.
C) Households receive wages for the amount of entrepreneurship they provide firms.
D) Firms pay wages for the amount of entrepreneurship they provide households.
E) The flows of goods and services and payments for the goods and services flow in the same direction.
A
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In the short run, how does the Fed change the nominal interest rate?
What will be an ideal response?
According to the Ricardian view of government deficits,
A. any future burden of tax financing should be ignored. B. government deficits reduce interest rates. C. taxpayers are less capable of saving when debt finance is used rather than tax finance. D. the private sector supply of loanable funds will increase in the face of government deficits.
A major Internet service provider decides to spend $70 million to purchase new server equipment. If the marginal propensity to consume is 0.8, the eventual change in GDP will be
a. $40 million. b. $50 million. c. $90 million. d. $350 million. e. $850 million.
Which curve summarizes inequality visually?
A. Income Inequality curve B. Gini curve C. Lorenz curve D. Laffer curve