The problem caused by goods that are considered common resources is that they are:
A. undersupplied.
B. underconsumed.
C. overconsumed.
D. oversupplied.
Answer: C
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What are the distinctions between domestic and national, and gross and net?
What will be an ideal response?
In the double-entry bookkeeping system used to track the economy, _____
a. the value of aggregate output equals the aggregate income paid for the resources used to produce that output b. government spending on transfer payment is recorded c. the earnings of all shareholders in the economy from the sale of shares are recorded d. inventories are counted twice, once as investment and once as output e. intermediate goods are counted twice, once as a type of output themselves and once as part of the final output
When government spending is added to the basic macroeconomic model, the multiplier for G would
a. be higher than the multiplier for autonomous spending. b. be lower than the multiplier for autonomous spending. c. be equal to the multiplier for autonomous spending. d. have no relationship to the autonomous spending multiplier.
Relative prices formed in a market process
What will be an ideal response?