Which of the following are policy instruments available to the Fed as it tries to achieve its macroeconomic goals?
i. government expenditure on goods and services and taxes
ii. the government budget deficit or surplus
iii. changes in the federal funds rate
A) iii only B) ii and iii C) ii only D) i and ii E) i and iii
A
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Which sector consists of services traded for food, shelter, housing or other services?
(a) tertiary (b) secondary (c) primary (d) international
The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, producer surplus will be
A) d. B) d + e. C) d + g. D) d + c + g.
In Japan, the market value of the land is approximately four times that of all the land in the United States, even though Japan is only about the size of California. The most likely explanation for this fact is
a. greater demand for land in Japan relative to the supply than in the United States. b. land is very productive in Japan. c. land is not fixed in supply in the United States. d. Japanese workers are very productive.
Which of the following is a way to compute GDP?
a. add up the wages paid to all workers
b. add up the quantities of all final goods and services
c. add up the market values of all final goods and services
d. add up the difference between the market values of all final goods and services and then subtract the costs of producing those goods and services