The crowding out effect refers to a decrease in
A. Consumption or investment as a result of an increase in government borrowing.
B. Consumption resulting from an increase in investment.
C. Government spending resulting from a decrease in taxes.
D. Investment resulting from an increase in consumption and a decrease in savings.
Answer: A
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The optimal bidding strategy for a second-price auction is
a. To bid your true value b. To shade your bid well below your true value c. To shade your bid just a little below your true value d. To size up your competition to determine how much to shade your bid
The value of an hour of leisure can best be estimated as
A. Total recreational expenditures divided by hours of leisure. B. Zero since no income is earned. C. The value of any productive work, although such a value is lower than what could have been earned. D. The hourly wage that could have been earned.
If real GDP in a year was $3,668 billion and the price index was 112, then nominal GDP in that year was approximately:
A. $3,846 billion B. $3,925 billion C. $4,108 billion D. $4,379 billion
Checking deposits at banks are
A) money. B) not money because they are an intangible. C) money only because they are insured by the FDIC. D) not money until they are converted into currency.