Which of the following is an example of a leakage from the circular flow of income and expenditure?
a. Government purchases of goods and services
b. Taxes
c. Investment
d. Exports
e. Consumption expenditures
b
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Employers and employees each pay a rate for Social Security that has risen from ________ to ________.
A. 15.3%; 5% B. 1%; 7.65% C. 1%; 5.45% D. 2%; 25%
Price floors typically improve market efficiency
a. True b. False Indicate whether the statement is true or false
The unregulated portion of the economy involving goods and services that are produced and exchanged without monetary transactions is known as
a. the underground economy. b. the secret economy. c. the capital consumption. d. transfer payments.
Which of the following shocks have caused most of the recessions since 1950?
a. Both c and e b. Increased government spending c. Oil price increases d. The beginning of a war e. Changes in Federal Reserve Policy