A general definition of the "transmission mechanism" is: the routes or channels that ripple effects created in the
A) market for goods and the services travel to affect the money market.
B) money market travel to affect the market for goods and services.
C) labor market travel to affect the market for goods and services.
D) market for goods and services travel to affect the labor market.
E) none of the above
B
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In the current year, a nation's government spending equals $15 trillion and its revenues are $20 trillion. Which of the following is TRUE?
A) The nation's national debt equals $5 trillion. B) This nation has a current year budget surplus of $5 trillion. C) This nation is currently running a budget deficit of $5 trillion. D) The nation has a current year trade surplus of $5 trillion.
In the equation Y = C + I + G + NX,
a. Y represents the economy's total expenditure. b. C represents household expenditures on services and durable goods. c. all of the variables are always positive numbers. d. All of the above are correct.
A prisoner's dilemma illustrates situations in which:
A. there is a conflict between the narrow self-interest of individuals and the broader interests of a group. B. efficiency is an important social goal. C. resources with the lowest opportunity cost should be used first. D. everyone does best when each person specializes in the activities in which he or she has a comparative advantage.
Assume the market in the graph shown with demand D and supply S1 is in equilibrium at a quantity of 5 units. Consumer surplus is:
A. $45. B. $9. C. $10. D. $5.