Does a 21 year old who inherited millions of dollars' worth of corporate stock and who never works supply anyone with productive services?
A) No, by definition.
B) Only if her wealth is invested in capital equipment that adds to economic growth.
C) Only if others are willing to pay to watch her enjoy life.
D) Yes, if she supplies the services of the resources she owns.
D
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What is happening at point B?
a. RGDP has just increased to $16.0 trillion.
b. The economy has just moved to equilibrium at $16.1 trillion.
c. Consumer spending has just fallen by $100 billion.
d. Business investment has just risen by $100 billion.
A public good
A. Is overproduced by the market. B. Is any good produced by the government. C. Is subject to the free-rider dilemma. D. Causes government failure.
The requirement for a double coincidence of wants occurs when
A. a system of barter is used. B. there is deflation. C. there is inflation. D. the medium of exchange is liquid.
Which of the following is a potential operating instrument for the central bank?
A) the monetary base B) the M1 money supply C) nominal GDP D) the discount rate