For an economy as a whole, income must equal expenditure because
a. the number of firms is equal to the number of households in an economy.
b. individuals can only spend what they earn each period.
c. every dollar of spending by some buyer is a dollar of income for some seller.
d. every dollar of saving by some consumer is a dollar of spending by some other consumer.
c
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It's easy for a private firm to provide a public good because of free riders
a. True b. False Indicate whether the statement is true or false
The poverty rate is based on a family's
a. income, in-kind transfers, and other government aid. b. income and in-kind transfers. c. in-kind transfers only. d. income only.
The practice of packaging individual debts into a single uniform asset that can be easily bought and sold is called:
A. federally-backed financing. B. bundled risk. C. leveraging. D. securitization.
Which of the following is the best example of a perfectly competitive firm?
A. DeBeers Diamond Company B. your local cable television company C. Tino's Italian Eatery, a local restaurant D. Jones's wheat farm in eastern Washington