Net interest payments by the government are usually
A. large and positive for both the federal, and state and local governments.
B. small and sometimes negative for the federal government, but large and positive for state and local governments.
C. small and sometimes negative for state and local governments, but large and positive for the federal government.
D. small and sometimes negative for both the federal, and state and local governments.
Answer: C
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Which of the following indicates the number of workers who are willing to work but are unemployed at the optimal union wage rate in Figure 31.1?
A. 22. B. Zero. C. 14. D. 6.
The set of mechanisms and institutions that resolve the questions of what, how, and for whom goods are produced is called the _____
a) automatic stabilizer mechanism. b) business resolution device. c) circular flow model. d) multiplier mechanism. e) economic system.
Economists observed the following growth rates in the fourth quarter of 1995: real GDP = 2.8 percent; M1 = 7.8 percent; GDP deflator = 2.2 percent. Given this data, the growth of velocity was approximately
A. ?7.8 percent. B. ?5.0 percent. C. ?2.8 percent. D. ?2.2 percent. E. ?2.0 percent.
A free market is a market:
A) that has price controls imposed by a ruling authority. B) where almost all exchanges take place involuntarily. C) where determination of equilibrium quantity is free from the forces of demand and supply. D) that operates with little or no government control.