Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 1,000, consumption equals 7,500, and government purchases equal 2,000 . What is national saving?
a. -500
b. 500
c. 2,000
d. None of the above is correct.
d
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Use the following table to answer the next question. The money supply and investment are in billions.Money Supply (billions of dollars)Interest RateInvestment (billions of dollars)$507%$100606110705120804130903140 Assume that the MPC is 0.8 and the reserve requirement is 0.1. If the Federal Reserve needs to increase aggregate demand by $100 billion at each price level to move the economy back to full employment and the current interest rate is 7%, then the Federal Reserve should ________ bonds on the open market equal to ________.
A. sell, $2 billion B. sell, $4 billion C. buy, $4 billion D. buy, $2 billion
To buy season tickets at the new Levi's Stadium, 49ers fans have to buy a Personal Seat License (PSL) that then allows them to buy season tickets for the next 30 years. This is an example of
A) why the NFL shouldn't have anti-trust exemptions. B) two-part pricing, where the PSL is the lump-sum payment. C) pure bundling pricing. D) positively correlated pricing.
Jobs that involve pleasant work, as opposed to jobs that involve unpleasant work, usually pay
a. higher wages, because jobs that involve pleasant work typically require more education than do jobs that involve unpleasant work. b. higher wages, because jobs that involve pleasant work typically require more well-developed personality skills than do jobs that involve unpleasant work. c. lower wages, because workers typically are not attracted to jobs that involve unpleasant work unless there is a monetary inducement. d. lower wages, because workers who take jobs that involve unpleasant work typically stay in those jobs for relatively long periods of time and accumulate significant experience.
Over time, the equilibrium price of a gigabyte of computer memory has fallen while the equilibrium quantity purchased has increased. Based on this we can conclude that:
A. decreases in the demand for computer memory have exceeded increases in supply. B. decreases in the supply of computer memory have exceeded increases in demand. C. increases in the demand for computer memory have exceeded increases in supply. D. increases in the supply of computer memory have exceeded increases in demand.