What is the difference between buying stocks and buying bonds?
A) The future growth of a stock is more uncertain than the payments of a bond.
B) Differences of opinion about a stock's future may vary considerably but there is less difference about a bond's future.
C) A stock can possibly pay dividends forever, but bonds have a fixed number of payments.
D) All of these are differences between stocks and bonds.
D
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When we choose a particular option, we must give up alternative options. The highest-valued alternative forgone is the ________ of the option chosen
A) opportunity cost B) comparative advantage C) nonmonetary cost D) absolute advantage
The U.S. system of resource ownership
a. is pure capitalism b. excludes any state ownership of resources c. includes government restrictions on the use of privately owned resources d. is designed to eliminate the problem of scarce resources e. excludes any communal ownership
Which of the following could produce the result indicated by the arrow in the Actual & Potential GDP graph? Check all that apply.
a. An increase in Consumer Spending
b. A decrease in Government Spending
c. An Increase in Taxes
d. A decrease in the money supply
e. An increase in Investment Spending
f. A decrease in Consumer Spending
In the basic Keynesian model, a decrease in government purchases:
A. increases short-run equilibrium output. B. increases potential output. C. reduces potential output. D. reduces short-run equilibrium output.