Consumption expenditures include spending by households on:
A. inventories.
B. exports.
C. residential housing.
D. services.
Answer: D
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A trade surplus occurs when
A) the value of imports is greater than the value of exports. B) government spending is less than total tax revenue. C) consumption is greater than disposable income. D) none of the above.
Which of the following is not a form of crowding out?
a. Lower household spending due to higher interest rates b. Lower business spending due to higher interest rates c. Lower net exports due to higher interest rates d. Lower private spending due to higher taxes e. Greater output and employment in the short run
The law of increasing opportunity costs states that as
A) less of a good is produced, the higher the opportunity costs of producing that good. B) more of a good is produced, the lower the opportunity costs of producing that good. C) more of a good is produced, the higher the opportunity costs of producing that good. D) more of a good is produced, the opportunity cost of producing the good remains the same. E) a and b
According to the text, economists consider full employment to occur when
A) everyone who wants a job has a job. B) frictional unemployment equals zero. C) the sum of frictional unemployment and structural unemployment equals zero. D) the unemployment rate consists of only frictional and structural unemployment.