Why isn't the level of personal income always a good measure of the distribution of goods and services?
What will be an ideal response?
Personal income does not include goods and services received as in-kind income. In addition, personal income does not measure the recipient's level of wealth, which is a potential source of purchasing power for goods and services.
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Examples of assets that are included in household wealth would be
a. stocks, bonds, and savings accounts. b. stocks, loans owed, and savings accounts. c. stocks, bonds, and mortgages. d. stocks, credit cards, and savings accounts.
Which of the following occurs during an expansion?
a. Output rises, employment rises and unemployment falls. b. Output falls, employment rises and unemployment falls. c. Output rises, employment falls and unemployment falls. d. Output rises, employment rises and unemployment rises. e. Output rises, employment rises and tax revenues fall.
Opportunity cost is measured by the
a. dollars paid for the goods b. quantity of other goods given up c. value of the resources used d. technology used e. units of opportunity gained by having the good
Keisha can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. The opportunity cost of one unit of Y for Keisha is
A) 5 units of X. B) 0.2 units of X. C) 3 units of X. D) 1/2 unit of X. E) none of the above