Debt needs to be judged relative to assets because:
A. private investment is always more productive than government investment.
B. assets can increase the ability of a country to repay a debt.
C. assets are always depreciating.
D. all assets provide interest payments to pay the debt.
Answer: B
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Refer to Figure 8-10. Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2. The price that sellers receive is
A. P0. B. P2. C. P5. D. P8.
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.
Which of the following shifts the short-run supply curve to the right?
A. An increase in the price level B. An increase in the minimum wages C. A decrease in the price of oil D. All of these responses are correct.
If aggregate output is less than planned spending, then
A. unplanned inventory investment is positive. B. unplanned inventory investment is negative. C. unplanned inventory investment is zero. D. actual investment equals planned investment.