In a closed economy, private saving is
a. the amount of income that households have left after paying for their taxes and consumption.
b. the amount of income that businesses have left after paying for the factors of production.
c. the amount of tax revenue that the government has left after paying for its spending.
d. always equal to investment.
a
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Wages typically vary among individuals for all of the following reasons, except one. Which is the exception?
a. differences in ability b. geographical differences in the cost of living c. differences in educational attainment d. differences in labor market experience e. differences in the prices of the goods produced by labor
A unit tax is
a. a tax in the form of a percentage of the value of the good taxed b. a fixed tax in the form of cents or dollars per unit of the good c. a sales tax applied to a foreign good d. any tax levied on a good e. the same as a poll tax
The unemployment rate was increasing from 6 percent to 7 percent could be interpreted as an increase in the natural rate of
a. inflation. b. unemployment. c. economic growth. d. aggregate supply.
Risk pooling:
A. gathers individuals with similar risks and pools them together. B. reallocates the costs of catastrophes when they occur. C. reallocates the likelihood of catastrophes happening. D. diversifies the risk of catastrophes occurring.