The child-care credit goes
A. directly to child-care centers.
B. to all households spending money on child, and elder care so that they may work.
C. directly to the states.
D. directly to children under 6.
Answer: B
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Assume there are no investment projects that will produce an expected rate of return of 8% or more. There are, however, $2 billion worth of investment projects with an expected rate of return at 7%. There is an additional $2 billion for every drop of the interest rate by 1%. If the real interest rate is 3% in this economy, the cumulative amount of investment at the 3% or higher rate of return is
A. $10 billion. B. $4 billion. C. $6 billion. D. $8 billion.
When the market basket is tracked over time the goods within the basket:
A. reflect the typical consumer each year, but prices are held constant, so it captures if we are consuming more or less as an economy. B. remain the same, so only changing prices are captured. C. remain the same, but some prices are held constant on items that are important to consumers. D. reflect the typical consumer each year, so it captures how consumers are affected each year.
In a natural monopoly situation
A. there is no need for government regulation. B. producers try to differentiate their product with advertising. C. there are large economies of scale relative to demand. D. the firm has an upward sloping average cost curve.
Land owned by an individual or a group of individuals is an example of the economic concept of
A. private property. B. human capital. C. public property. D. physical capital.