What is disposable income? How is it calculated?
What will be an ideal response?
Disposable income (DI) is the sum of the incomes of all individuals in the economy after all taxes have been deducted and all transfer payments have been added.DI = GDP ? Taxes + Transfer payments= GDP ? (Taxes ? Transfers)= Y ? Twhere Y represents GDP and T represents taxes net of transfers or simply net taxes.
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"Insider trading" laws are meant to prevent
A) the executives of a corporation from holding a majority of its outstanding shares. B) buying or selling shares based on information not available to the public. C) foreign investors from gaining controlling interest in U.S. corporations. D) the issuing of bonds for the purpose of buying stock.
Which statement is true?
A. Today more workers in the U.S. are members of labor unions than any time in our history. B. Today labor unions are weaker than any time in the last 100 years. C. No major labor union has called a strike since the 1940s. D. Labor unions are relatively strong in the public (government) sector.
How do we measure economic growth?
A. increases in the price level, as indicated by the GDP chain price index B. increases in nominal GDP C. increases in real GDP D. increases in the labor force
Noise from a hard rock concert is an example of a situation in which
A. social costs that are not external costs. B. social costs are greater than private costs. C. social costs are less than private costs. D. social costs are equal to private costs.