In a closed economy, private saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) Y + TR - C - T B) Y - C - T C) Y - G - T + TR D) Y - G - T
A
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An inferior good is:
a. any good of low quality. b. one that consumers buy less of at a higher price. c. one that consumers buy less of as their income rises. d. one that has few substitutes. e. any good made with inexpensive labor.
A stress test of banks, such as that undertaken in the Spring of 2009, is designed to:
A) ensure that banks have followed proper accounting standards B) make sure that banks are properly managed C) gauge how well banks would fare if the economy worsens D) estimate the impact of a bank panic on the overall economy
You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. If the return on your investment is ________, then you will earn an economic loss.
A. less than 6% B. exactly 6% C. greater than 6% D. It is indeterminate from the given information.
When examining the growth record of any nation
A) all that must be examined is increases in per capital real GDP. B) no consideration should be given to the change in the average amount of leisure time in the nation. C) increases in per capita real GDP must be considered along with how far the production possibilities curve has shifted. D) we must consider which income groups have benefited most from the growth.