Which of the following is the best definition of economics?
a. Economics is the study of how to manage corporations to generate the greatest return on shareholder investment.
b. Economics is the study of how to manage city and country government to generate the greatest good to its citizens.
c. Economics is the study of how society chooses to allocate its scarce resources.
d. Economics is the study of how to track revenues and costs within a business.
c
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A new law applied to a competitive market that requires laid off workers be paid a large severance payment will
A) not generate a deadweight loss. B) increase total welfare. C) increase consumer surplus in the market. D) decrease consumer surplus in the market.
Suppose a bank lends you $1,000 to purchase a car. Which of the following correctly represents the changes in the bank's balance sheet before you spend the money?
a. Assets: loans, +$1,000 . Liabilities and net worth: checking deposits, +$1,000 b. Assets: loans, -$1,000 . checking deposits, +$1,000 . Liabilities and net worth: no change c. Assets: loans, +$1,000 . checking deposits, -$1,000 . Liabilities and net worth: no change d. Assets: checking deposits, +$1,000 . Liabilities and net worth: loans, +$1,000 e. Assets: checking deposits, +$1,000 . Liabilities and net worth: loans, -$1,000
Clarence is a Japanese citizen working for Toyota at the manufacturing plant located in Tennessee. Clarence's work will contribute toward:
A. U.S. GDP since the location of the plant is in the U.S. B. Japan's GDP since he's a Japanese citizen. C. Japan's GDP since it's a Japanese firm. D. both the U.S. and Japan's GDP.
If the aggregate supply curve is positively sloped, an increase in the money supply will result in an increase in both equilibrium national income and the equilibrium price level
a. True b. False Indicate whether the statement is true or false