When the government decides to add a fighter aircraft to national security, it
a. builds it in its own defense factories
b. commandeers the resources (labor, capital) and uses them to build the plane
c. must go to the Fed for the money to buy the aircraft since the Fed is the agency that creates money
d. taxes its people and pays an aircraft company to make a plane
e. taxes Boeing to produce the Boeing aircraft
D
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If the population increase in India is smaller than the increase in Indian real GDP, then GDP per capita will
a. decrease. b. increase. c. remain constant. d. increase more slowly than real GDP.
The labor-force participation rate equals the percentage of the labor force that is employed
a. True b. False Indicate whether the statement is true or false
Use the following balance sheet for the First Federal Bank to answer the next question.AssetsLiabilities + Net WorthReserves$100,000Checkable deposits$300,000Loans140,000Stock shares200,000Securities60,000 Property200,000 If the reserve requirement is 20%, this bank can safely expand its loans by a maximum of
A. $20,000. B. $100,000. C. $200,000. D. $40,000.
To the economist, total cost includes:
A. explicit and implicit costs, including a normal profit. B. implicit, but not explicit, costs. C. neither implicit nor explicit costs. D. explicit, but not implicit, costs.