Answer the following questions true (T) or false (F)
1. The level of saving in the economy is equal to the level of income times the marginal propensity to consume.
2. Partial equilibrium refers to the equilibrium level of GDP in the economy.
3. National income is equal to wages, rents, interest and profits.
1. FALSE
2. FALSE
3. TRUE
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What other curve is the same as the market supply curve? Why are the curves the same?
What will be an ideal response?
All of the following would be considered explicit costs of operating a business except
A) the rental value of equipment the company owns and uses for its own production. B) advertising expenses. C) utility expenses. D) the cost of raw materials used in production.
The government budget constraint tells us that to the extent that government expenditures are NOT financed by tax collection, the public ends up holding ________ government bonds and ________ money
A) more, more B) more, less C) fewer, more D) fewer, less
Assume that in an economy with 200M inhabitants, 90M work, 4M are looking for a job, 3M receive unemployment insurance compensation, and 6M receive unemployment insurance compensation and are looking for a job. What is the unemployment rate?
A) 13% B) 10% C) 6.5% D) 5%