Which of the following statements is false?
A) Domestic income is the total income earned by the people and businesses within a country's borders.
B) National income is the total income earned by U.S. citizens and businesses, no matter where they reside or are located.
C) Corporate profits is the largest component of national income.
D) National income = compensation of employees + proprietors' income + corporate profits + rental income + net interest.
C
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Sustained economic growth generally occurs when a nation
A) abandons the market system in favor of central economic planning. B) abandons the rule of law in favor of a series of licenses, regulations, and tariffs to control and protect the domestic economy. C) subsidizes loss-generating enterprises and thereby preserves jobs and incomes. D) creates conditions where people are free to specialize and exchange.
Refer to Figure 13-3. Suppose the economy is at point A. If investment spending increases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
A given short-run Phillips curve shows that an increase in the inflation rate will be accompanied by a lower unemployment rate in the short run
a. True b. False Indicate whether the statement is true or false
If the cross-price elasticity is negative, we can conclude that the two goods are ______ because the price of one good and the demand for the other move in opposite direction.
a. surrogates b. substitutes c. complements d. contradictory