One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.
Answer: B
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Which of the following is not a component of aggregate expenditure?
a. Consumption expenditures b. Investment c. Imports d. Rent e. Government purchases
Other things constant, a decrease in the price of fertilizer will: a. increase the supply of wheat
b. decrease the supply of wheat. c. increase the demand for wheat. d. decrease the demand for wheat.
Suppose a U.S. automobile manufacturer produced $200 million worth of automobiles in the United States in 2009, but $50 million worth went unsold. How much was the company's contribution to GDP?
a. $50 million b. $250 million c. $150 million d. $200 million e. -$150 million
Under which of the following scenarios would a park be considered a club good?
a. Visitors to the park must pay an admittance fee, but there are always plenty of empty picnic tables. b. Visitors to the park must pay an admittance fee and frequently all of the picnic tables are in use. c. Visitors can enter the park free of charge and there are always plenty of empty picnic tables. d. Visitors can enter the park free of charge, but frequently all of the picnic tables are in use.