In a simple economy without government or foreign trade,and output can be purchased only by consumers or by firms, saving must equal:
A. investment.
B. depreciation.
C. consumption.
D. income.
Answer: A
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In the country of Marzipana, total consumption in Year 1 was $56,000 million and in Year 2 was $60,000 million. It has been observed that each time disposable income changes in this country by $100, consumption changes by $70 . Using this information compute the change in disposable income from Year 1 to Year 2
a. Disposable income increased by $2,800 million in Year 2. b. Disposable income decreased by $2,000 million in Year 2. c. Disposable income increased by $2,000 million in Year 2. d. Disposable income increased by $4,500 million in Year 2. e. Disposable income decreased by $2,600 million in Year 2.
One reason why economists often appear to disagree when asked about the impact of some bad economic news is that
a. they do not understand the economy very well b. economics is a very difficult science, and so there are many incorrect economic projections being made c. economists rarely disagree; people just think they are disagreeing because they do not understand the language of economics d. economists often appear to be disagreeing when one is talking about long-run impact while the other is referring to short-run impacts e. economists are by nature competitive individuals and they often disagree
As the U.S. labor force grows and the nation’s capital stock is augmented by investment, the
A. price level will rise. B. aggregate supply curve shifts inward. C. aggregate supply curve shifts outward. D. aggregate supply curve becomes steeper.
Financial securities that represent promises to repay a fixed amount of funds are known as
A) bonds. B) stocks. C) pension funds. D) insurance premiums.