A fiduciary monetary system ultimately rests on
A) the value of the assets backing up the system. B) the public's confidence in the system.
C) the difficulty of counterfeiting the currency. D) the value of the metal backing up the system.
B
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Laborland has 1 million workers. Suppose 50,000 workers migrate from a neighboring country to join Laborland's work force. Which of the following will happen in this case if Laborland's capital stock remains unchanged?
A) The country's income per worker will increase. B) The total efficiency units of labor in the economy will decrease. C) The relationship between output and capital stock becomes negative. D) The marginal contribution of labor to Laborland's output will fall.
The circular flow of income describes the
A) flow of income from domestic firms to the nonproduction sector and back again. B) amount of money in the economy. C) sum of all injections into the economy. D) sum of all withdrawals from the economy.
National defense made up the largest portion of federal expenditures in 2009
a. True b. False Indicate whether the statement is true or false
Some economists believe that policy makers should avoid stabilization policy because
a. lags make the policy impact unpredictable. b. no tax cut ever stimulated demand. c. stabilization policies are rarely signed into law. d. it never works.