The central institution through which a laissez-faire system answers the basic economic questions is the
A. tribal council.
B. market.
C. government.
D. central planning body.
B. market.
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If the level of investment in an economy is $4,000 and the GDP of the economy is $10,000, the savings rate in the economy must be:
A) 40%. B) 44%. C) 30%. D) 20%.
The above table has the demand and supply schedules for money. If the Fed increases the quantity of money by $0.1 trillion, the new equilibrium nominal interest rate is
A) 5 percent. B) 7 percent. C) 6 percent. D) 9 percent. E) 8 percent.
For any competitive labor market, what change would have to occur to cause the labor supply to decrease and shift the supply curve left?
A. Number of firms increases B. None of these statements is true. C. Number of workers increases D. Opportunity cost of work increases
Janet is a farmer. Which of the following are included in her human capital?
a. her tractor and what she's learned from experience b. her tractor but not what she's learned from experience c. what she's learned from experience but not her tractor d. neither her tractor nor what she's learned from experience