A traditional system solves basic economic questions by long-standing customs
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements is FALSE?
A) Transactions in which households buy final goods and services occur in the factor market. B) Saving is the difference between consumer income and expenditures. C) The value of total output is identical to total income. D) One definition of total income is that it is the annual cost of producing the entire output of final goods and services.
Consider the market for consumer loans. A legal ceiling set below the market-clearing interest rate would tend to
A) increase the quantity demanded for loans. B) decrease the quantity supplied of loans. C) create a shortage of loans. D) do all of the above. E) do none of the above.
In 2010, the United States and foreign economies start to recover from the recession. U.S. firms increase their profit expectations. As a result, the demand for loanable funds curve shifts ________ and the real interest rate ________
A) leftward; decreases B) rightward; decreases C) leftward; increases D) rightward; increases
If an American firm opens a production facility in India, the total value of the production will be included in the
A) national income of the United States. B) gross domestic product of India. C) gross domestic product of the United States. D) national income of India.