Dissaving occurs when
A. income is greater than saving.
B. saving is greater than the interest rate.
C. saving is greater than consumption.
D. income is less than consumption.
Answer: D
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If the demand for used cars decreases after the price of a new car falls, used cars and new cars are
A) substitute goods. B) inferior goods. C) normal goods. D) complementary goods. E) The questions errs because it is the quantity of used cars, NOT the demand for used cars, that will change when the price of a new car falls.
Iran called on OPEC in November 2008 to cut production by a further 1 million to 1.5 million barrels per day when it meets in Cairo later this month. Why would OPEC, a cartel, restrict production?
A) to decrease demand B) to increase supply C) to decrease quantity supplied D) to increase profits
Christopher is an unpaid, stay-at-home father who works as a volunteer at the local Habitat for Humanity chapter. Currently, Christopher is not looking for a paid job. The Bureau of Labor Statistics counts Christopher as
a. unemployed and in the labor force. b. unemployed but not in the labor force. c. in the labor force but not unemployed. d. neither in the labor force nor unemployed.
Paying interest on internal government debt involves a:
A. redistribution of income among citizens of the country. B. net increase in domestic income. C. net reduction in domestic income. D. redistribution of income to citizens of other countries.