Two goods are substitutes if a decrease in the price of one raises the quantity demanded of the other
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following occurs in the factor market?
A) households exchange resources for goods and services. B) firms exchange money for resources. C) firms exchange goods and services for resources. D) households exchange money for goods and services.
If the value of exports equals $6.5 billion and the value of imports equals $8.0 billion in a year, then:
a. together imports and exports add $1.5 billion to the gross domestic product (GDP). b. together exports and imports add $6.5 billion to the gross domestic product (GDP). c. together exports and imports reduce the gross domestic product (GDP) by 1.5 billion. d. together exports and imports reduce the gross domestic product (GDP) by 1.5 billion. e. together exports and imports add nothing to the gross domestic product (GDP).
Martha Stewart earns $4,000 and she wants to save it for retirement, which is 10 years away. She can either save it in a taxable account or put it into a Roth IRA. Suppose that Martha can receive an annual rate of return of 8 percent and her marginal tax rate is 25 percent. By the time she reaches retirement, how much money would she have in either option? NOTE: Martha has to pay tax on the $4,000, so she cannot put the full amount into either the taxable account or the Roth.
What will be an ideal response?
An effective program used to fight transient poverty is:
A. health insurance. B. job training. C. unemployment insurance. D. All of these are effective at fighting transient poverty.