Businesses do all of the following except:
A. demand goods and services from households in the goods market.
B. pay taxes to the government.
C. demand labor services from households in the factor market.
D. supply goods and services to the government in the goods market.
Answer: A
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What is the difference between an inflation-indexed Treasury bond, and a Treasury bond that is not indexed?
A. An inflation-indexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not. B. A nonindexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not. C. An inflation-indexed Treasury bond can only be purchased directly from the Federal Reserve, while a nonindexed Treasury can be purchased through a broker. D. An inflation-indexed Treasury bond always guarantees the purchaser a 5 percent rate of return, while a nonindexed Treasury bond does not.
Which of the following will tend to occur if price floors are imposed on a product?
a. persistent surpluses b. problems of disposal of goods c. disguised discounts developing to eliminate excess production d. overinvestment in the industry e. All of the above are correct.
You put money into an account and earn an after-tax real interest rate of 2.5 percent. If the nominal interest rate on the account is 8 percent and the inflation rate is 2 percent, then what is the tax rate?
a. 28.00 percent b. 36.25 percent c. 43.75 percent d. 67.50 percent
Comparative advantage cannot account for a significant portion of world trade
Indicate whether the statement is true or false