Refer to Table 8-31. The table above represents hypothetical data from the National Income Accounts for 2015. Use the data to calculate personal income and disposable personal income
What will be an ideal response?
Personal Income = National income - Retained earnings + Transfer payments + Interest on government bonds.
Substituting the table values:
Personal Income = $7,400 - 480 + 1,000 + 450
= $8,370 billion.
Disposable personal income = Personal Income - Personal Taxes
= $8,370 - 1,100 = $7,270 billion.
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An increase in the rate of economic growth curve could be caused by all of the following except
A. a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce. B. a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods. C. an increase in immigration that increases the country's labor force by 20 percent. D. an increase in research and development spending for space technology that improves the quality of the nation's capital stock.
The quantity theory of money states that in the long run
A) the price level will not consistently rise, it will fluctuate. B) an increase in the quantity of money results in an equal percentage increase in the price level. C) a rise in the price level rises causes the quantity of money to increase. D) an increase in the quantity of money increases real GDP by a smaller percentage.
Charging drivers with good records lower premiums than drivers with bad records is an example of an attempt by insurance companies to deal with the problem of
A) moral hazard. B) adverse selection. C) drunk driving. D) failure of policyholders to keep paying their premiums.
Which of the following statements in the context of poverty in the U.S. is true?
a. Families headed by males are likely to be poor. b. Caucasian Americans carry a much heavier burden of poverty compared to the native Americans. c. Education and technical skills do not affect employment in the United States of America. d. Females tend to have a greater literacy rate than males in the United States of America. e. Minorities, young and disabled have a higher likelihood to fall into poverty