This model thus has two leakages
What will be an ideal response?
—savings and net taxes; and two injections—intended investment and government spending. As discussed in the previous chapter, savings and investment flow through the financial system, and may or may not balance. Similarly, taxes and government spending may or may not balance, depending on whether the government has a deficit, a surplus, or a balanced budget.
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Figure 5-5 shows a consumer budget line for french fries and hamburgers. The price of an order of fries is $2. This implies that the price of a burger is
A. $1. B. $2. C. $4. D. $8.
Suppose we want to know how much money your grandparents would have to earn now to have purchasing power equivalent to their income in 1969. We could:
A. translate their nominal income in 1969 into constant, real dollars of today. B. translate their nominal income today into 1969 dollars. C. take a ratio of their income today with their income from 1969. D. None of these statements is true.
If a firm experiences economies of scale throughout, it will have a horizontal long-run average-total-cost curve
a. True b. False Indicate whether the statement is true or false
Which of the following characteristics of Exland, a less-developed country, is not typical?
a. a high percentage of the population under 15 b. political instability c. modern technology d. lack of infrastructure e. dependence on exports of natural resources