A situation in which spending exceeds income is
A. dissaving.
B. autonomous consumption.
C. average propensity to save.
D. positive saving.
Answer: A
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The process of steady increase in the quantity and quality of goods and services the economy can produce is called:
A. production. B. aggregation. C. economic growth. D. globalization.
A headline reads "Soccer is the new popular sport among youth." In a competitive market, this situation would lead to a(n):
a. Increase in the price of soccer shoes and decrease in quantity sold b. Decrease in the price of soccer shoes and increase in quantity sold c. Increase in the price of soccer shoes and quantity sold d. Decrease in the price of soccer shoes and quantity sold
In the long run, what effect does a government's deficit spending have on equilibrium real Gross Domestic Product (GDP)?
A. Higher government deficits will not raise equilibrium Gross Domestic Product (GDP) above the full-employment level. B. Higher government deficits will raise equilibrium Gross Domestic Product (GDP) above the full-employment level and also have an inflationary effect. C. Deficit spending will decrease the nation's equilibrium real Gross Domestic Product (GDP). D. Government deficit spending will increase equilibrium real Gross Domestic Product (GDP).
Which of the following statements about the concept of opportunity cost is true?
A. The opportunity cost of a decision only includes monetary outlays. B. The opportunity cost of a decision is the next best foregone alternative. C. All decisions have zero opportunity cost. D. The opportunity cost of a college education is measured by the payments for tuition and books.