Distinguishing among money, income, and wealth
A. A person's money is the currency held and the checking account balance, income is the earning and wealth is equal to the value of assets minus all debts
B. A person's money is the currency held and the earnings from work, income is equal to the bank balance and wealth is equal to the profit from investment
C. A person's money is the currency in the pocket, income is the earning and wealth is equal to asset value
Ans: A. A person's money is the currency held and the checking account balance, income is the earning and wealth is equal to the value of assets minus all debts
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Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, real wages in country A will tend to ________ and employment in country A will tend to ________
A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase
Which of the following items are considered physical capital?
I. shares of Ford stock traded on the New York Stock Exchange II. the Taco Bell store nearest you III. the rental cars owned by Hertz Rental-A-Car IV. the salaries paid to Intel executives A) II and III B) I and IV C) I, II and III D) I, II and IV
Which of the following is a problem with using real GDP as a measure of economic well-being? a. It does not account for inflation
b. It does not account for production within the household. c. It does not account for production by foreign firms producing inside the U.S. d. all of the above
Which of the following countries can reduce youth unemployment by adjusting its labor laws?
a. South Africa b. Spain c. India d. Greece