Discuss how economists calculate NI, PI and DI.
What will be an ideal response?
GDP ? depreciation = NI ? profits ? FICA + transfer payments + net interest + dividends = PI ? personal income taxes = DI.
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Supply is unit elastic when the
A) supply curve is upward sloping. B) price elasticity of supply is positive. C) percentage change in the quantity supplied equals the percentage change in price. D) supply curve is horizontal. E) supply curve is vertical.
The difference between the exchange value of a money and its cost of production is defined as
A) seigniorage. B) net value. C) net exchange profit. D) the face value.
Which of the following is NOT an assumption used in deriving a production possibilities curve?
A) The labor force is growing at a constant rate. B) Resources are fully employed. C) Technology is constant. D) The quantity of resources is constant.
When the Federal Reserve sells securities on the open market it drives bond prices ____ and drives interest rates ____.
A. up; up B. down; down C. up; down D. down; up