The money supply contracts when the Fed
a. replaces old worn-out notes and bills.
b. borrows from the Treasury.
c. sells government securities.
d. purchases stocks from corporate businesses.
c
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Productivity is hardest to measure in which sector?
a. Agriculture b. Construction c. Manufacturing d. Service.
Which of the following is true?
a. There is a fixed size of economic pie available for the government to allocate among individuals. b. In a market economy, the link between productivity and income provides individuals with an incentive to provide resources that are highly valued by others. c. Taxes and transfers do not affect the amount of income that is created. d. How income is distributed exerts little impact on the total amount of income generated.
Defenders of growth say that it is the primary path to raising living standards.
Answer the following statement true (T) or false (F)
Assume leisure is a normal good. The substitution effect of a wage increase implies a ________ demand for leisure and a ________ labor supply.
A. lower; lower B. higher; lower C. lower; higher D. higher; higher