For the economy as a whole:
a. income must equal expenditures
b. expenditures exceed income because of taxes.
c. income exceeds expenditures because of saving.
d. expenditures exceed income because of the government budget deficit.
a
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Retirement savings accounts, such as IRAs, help increase economic growth because
A) they encourage international trade. B) government invests them. C) they keep the interest rates high. D) people have an incentive to work harder and longer hours to save for the future. E) savings finances investment.
Refer to the scenario above. In this case, a Nash equilibrium occurs if ________
A) each of them bids up to their value for the good B) Tom and Roger bid up to their value for the good while Bill and Jeff bid below their value for the good C) Tom and Jeff bid up to their value for the good while Roger and Bill bid below their value for the good D) Bill and Jeff bid up to their value for the good while Tom and Roger stop bidding at $100 and $200, respectively
Graphically show how transfer payments affect labor supply and production possibilities.
What will be an ideal response?
A firm may pay efficiency wages in an attempt to
a. entice workers to work the night shift rather than the day shift. b. improve productivity by reducing turnover. c. reduce costs by attracting the least-skilled workers to apply for job vacancies. d. All of the above are correct.