Housing wealth is equal to
What will be an ideal response?
the market value of a house minus the value of loans people have taken out to pay for the house
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A Social Security system in which payroll taxes that workers and their employers pay in go directly to retirees and other beneficiaries is known as
A) a pay-as-you-go system. B) an individual-account system. C) a primary-deficit system. D) a social-lockbox system.
Exhibit 2-3 Production possibilities curve data A B C D E Capital goods 0 1 2 3 4 Consumer goods20 18 14 8 0 According to the data given in Exhibit 2-3, the production of 1 unit of capital goods and 20 units of consumer goods:
A. is possible but would be inefficient. B. may be a result of unemployment. C. may be a result of unused natural resources. D. is not feasible with current resources and technology.
The Ricardian equivalence theorem states that
A. increases in government spending have a larger impact on real Gross Domestic Product (GDP) than decreases in taxes. B. an increase in the government budget deficit has no effect on real Gross Domestic Product (GDP) because it only affects the price index. C. an increase in government spending has no effect on aggregate supply. D. an increase in the government budget deficit created by a current tax cut has no effect on aggregate demand.
Which of the following is an example of frictional unemployment?
A. Hector looked for a job for five weeks after finishing college. He turned down several jobs that didn't fit his skills, but now has a job that requires the expertise he gained in college. B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. C. George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. D. Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year.