Which is a correct match of an economic resource and payment for that resource?
a. Labor and interest income
b. Capital and profit
c. Land and rental income
d. Entrepreneurial ability and wages
Ans: c. Land and rental income
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Imagine two countries, Zorba and Anduluvia. Zorba is producing everything at a lower resource cost than Anduluvia. If the two countries trade what is the reason?
What will be an ideal response?
Monetarists differ from Classical economists in that they argue that
A) changes in the money supply affect only the price level in the long run. B) velocity is not fixed but is predictable. C) the economy tends to be stable around full employment. D) the demand for money is a fixed fraction of nominal GDP.
Some economists argue that the increases in aggregate demand for output spurred by wartime spending, complemented by the strong spending in the private sector, impacted the U.S. economy by
(a) increasing production and employment. (b) increasing employment and income. (c) increasing income, thus fueling additional spending. (d) contributing to all of the above.
The dollar amount of reserves a bank is obligated by regulation to hold as cash in the bank's vault or on account at the Fed is called the excess reserves
Indicate whether the statement is true or false