Capital deepening occurs when
a. consumption and immigration increase
b. capital-labor ratio increases
c. employment increases
d. saving increases and investment decreases
e. the number of workers increases and investment decreases
B
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Suppose prices are quoted in dollars and transactions are conducted in pesos. The dollar serves as a
A) medium of exchange. B) store of value. C) unit of account. D) all of the above.
A monetarists would expect an increase in government spending to have a strong effect on output only if the spending increase was
a. financed by an increase in the money supply. b. financed by a sale of bonds. c. financed by an increase in taxes. d. accompanied by a higher in the deficit.
In order to dispose of nuclear waste created by power plants around the country, the government buys land in Glowing Gulch, Idaho. Citizens of that town organize to block construction of the nuclear waste facility. Which of the following statements is false?
a. The benefits of the nuclear waste facility are widespread. b. The costs of the nuclear waste facility are concentrated. c. The citizens of Glowing Gulch are a special-interest group. d. Consumers of the power generated at the nuclear plants are not likely to organize to support construction of the nuclear waste facility. e. The citizens of Glowing Gulch are equally concerned about all public issues.
Macroeconomics is the branch of economics that concerns
a. the behavior of individual actors in the economy b. output in a specific industry c. the overall health of the economy d. the federal government only e. prices in a specific industry