Suppose that at the current price producers of CDs offer 5 million CDs for sale but consumers want to buy 6 million. When the market coordinates the demand and supply for CDs, the price of CDs will:
A. rise.
B. fall.
C. stay the same.
D. be fixed by the government.
Answer: A. rise.
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Suppose the government's initial debt is $350 billion and that during the next two years the government runs deficits of $90 and $40 billion
If during the third year the government has a $70 billion surplus, the government's total debt at the end of the three years will be A) $60 billion. B) $200 billion. C) $410 billion. D) $550 billion.
Increase in price of a good will increase consumers' demand. This is a(n)
A) positive statement. B) true statement. C) inverse statement. D) normative statement.
Suppose you make $1,000 investment today that you believe will have a one-time return of $2,500 in 5 years. If the interest rate is 12%, will you have a profitable investment?
A. Yes, because the NPV is positive B. Yes, because the NPV is negative C. No, because the NPV is positive D. No, because the NPV is negative
The expenditure approach to GDP accounting includes:
a. wages and salaries.
b. net exports.
c. net interest.
d. corporate profit.
e. proprietors' income.