Because resources are scarce relative to wants, the study of economics concerns
A) how money is important to people.
B) how individuals, businesses, and governments make choices.
C) how money is used to buy what people want.
D) None of the above are correct.
Answer: B
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If Joe earns $80,000 per year and pays $20,000 in taxes, while Moe earns $100,000 and pays $22,000 in taxes, their tax system would best be described as:
a. progressive. b. proportional. c. regressive. d. discretionary. e. lump-sum.
What statement about the savings and loan crisis of the 1980s is true?
a. Many savings and loan depositors lost their entire savings. b. A combination of deposit insurance and deregulation had encouraged savings and loans to take risks. c. Depositors panicked and made runs on the savings and loans, which had a waterfall effect. d. Savings and loans had to pay about $150 billion to cover their financial losses.
Figure 10-6
In Figure 10-6, which graph best illustrates the effect of the beginning of the Iraq war in 2003?
a.
(1)
b.
(2)
c.
(3)
d.
(4)
The nominal interest rate equals the:
A. inflation rate minus the real interest rate. B. real interest rate minus the inflation rate. C. real interest rate plus the inflation rate. D. real interest rate divided by the inflation rate.