Alberta buys a paint sprayer and a lift for her car customizing shop. A macroeconomist would refer to these purchases as investment
a. True
b. False
Indicate whether the statement is true or false
True
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The transaction demand for money comes mostly from the fact that
A) money is a medium of exchange. B) money has low opportunity cost. C) money is a store of value. D) money is a unit of account.
In Figure 5-18, point D for the consumer
A. will be chosen because total utility is larger there than at point C. B. would not be chosen because it is less desirable than point C. C. is unattainable, given the consumer’s budget. D. has total utility equal to point C.
What do government purchases include in national income accounting?
A. Government transfer payments B. Purchases of goods for consumption but not public capital goods C. Purchases by federal, state, and local governments D. Purchases by the federal government only
The government imposes a tax on an industry that produces goods creating a negative externality. Yet the industry produces more than the optimum quantity of output. This means
A. the tax is less than the external cost associated with the product. B. the tax is more than the external cost associated with the product. C. the company should increase the production of the product. D. the company should advertise the product more.