In the circular flow model, savings is considered a leakage because
A. it does not get counted toward an individual’s accumulated wealth.
B. it becomes an input toward venture capital
C. it contributes to the budget surplus.
D. it is the amount that consumers do not spend of their disposable income.
Answer: D
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The level of GDP, all else held constant, will tend to increase when ________.
A. reserve requirements are increased B. there is an increase in the discount rate C. the federal funds rate is increased D. the Federal Reserve buys government securities in the open market
Assume there are two competing social network sites, Mugshot and Graybar, and each grow in value as more people use them
Mugshot has been around longer and has the most users, but people tend to agree that Graybar is a better site, so the equilibrium where everyone uses Graybar is preferred to the equilibrium where everyone uses Mugshot. This situation describes a multiplayer A) assurance game. B) prisoner's dilemma game. C) battle of the sexes game. D) pure coordination game.
Explain why a comprehensive tax reform that aims to eliminate loopholes while promising to lower rates for everyone is the best opportunity for an efficiency-enhancing tax reform
What will be an ideal response?
Answer the following statement(s) true (T) or false (F)
1. Sustainable development refers to the management of the earth’s resources to ensure their quality and abundance for future generations. 2. Nobel Laureate Robert Solow argues that sustainable development is a good concept to guide national policy. 3. The shape of the Environmental Kuznets Curve reflects the theory that advanced levels of industrial development are linked to higher levels of pollution. 4. According to the textbook application, the pessimistic view about the shape of the Environmental Kuznets Curve is that, after a critical income level, a country can only maintain its existing pollution level. 5. Agenda 21 and the Rio Declaration are two major documents produced from the Rio Summit in 1992.