What is the main factor that explains why government spending typically exceeds government purchases?
a. Imports exceed exports
b. Transfer payments
c. The federal debt
d. Government budget deficits
e. Construction of schools
B
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In economics, the creation of capital is referred to as
A. investment. B. comparative advantage. C. allocation. D. consumption.
Consider a monopolist who charges a single price to all of its customers. If this monopolist starts price discriminating, its output will ________ and its profit will ________.
A. rise; fall B. rise; rise C. fall; rise D. fall; fall
Use the following graph for the federal funds market to answer the next question.
If the Fed wants to raise the federal funds rate by one-half of a percentage point, it should ________.
A. act to increase reserves by $50 billion B. buy bonds from banks and the public C. act to reduce reserves by $50 billion D. pursue an expansionary monetary policy
Over ninety-five percent of all new businesses that open each year in the United States employ ________ workers
A) only one or two B) fewer than 20 C) 50 or more D) over 100