The identity that shows that total income and total expenditure are equal is
a. GDP = Y.
b. Y = DI + T + NX.
c. GDP = GNP - NX.
d. Y = C + I + G + NX.
d
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Today's U.S. dollar bills are "backed" by
A) nothing. B) Warren Buffet. C) barrels of oil. D) precious metals. E) U.S. Treasury Bonds.
The quantity of CDs that firms plan to sell this month depends on all of the following EXCEPT the
A) number of producers of CDs. B) quantity of CDs that people plan to buy. C) wage rate of workers who produce CDs. D) price of a CD.
"Creative destruction" in a market system is brought about by
What will be an ideal response?
Which one of the following statements is TRUE?
A) An effective price ceiling results in a surplus of the good. B) An effective price floor results in a shortage of the good. C) When the market clearing price of a good is the equilibrium, then everyone can afford it. D) The market clearing price of a good reflects its relative scarcity.