Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth.
B. a change in society's preferences for motorcycles versus hybrid cars.
C. a reduction in unemployment.
D. an improvement in technology.
Answer: B
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If New England had a Gini coefficient of 0.32 and the Middle Colonies had a Gini coefficient of 0.65, which of the following would be most accurate?
a. The Middle Colonies would have a higher per capita income. b. The Middle Colonies would have a lower per capita income. c. The Middle Colonies would have greater income inequality. d. The Middle Colonies' income was growing faster.
Savings are good for a family. If all families increase savings, the economy is better off. This fallacy of composition is called:
a. the paradox of time. b. the paradox of dissaving. c. the paradox of thrift. d. the paradox of value. e. the paradox of choice.
The following figures are for the banking system. Deposits at the central bank = 400 U.S. Government Securities = 600 Transactions Deposits = 1,700 Loans = 800 Stockholder's Equity = 70 Other Assets = 450 Other Liabilities = 380 Borrowing from the Federal Reserve = 250 Cash in the Vault = 150 The reserve ratio on transactions deposits = 10% Currency in circulation = 10 The monetary base equals:
a. 560 b. 1,700 c. A multiple of 80 d. Cannot be determined with this information. e. 80
________ is (are) an example of selling externality rights.
A. Having the damaged party avoid the damage B. Direct subsidies for positive externalities C. Auctioning the right have a garage sale each year D. Government imposed taxes