If national saving increases, ________. (Assume that the capital account is zero and net transfers are zero.)
A) the sum of domestic investment and net exports must decrease
B) the sum of domestic investment and foreign investment must decrease
C) the sum of domestic investment and foreign investment must increase
D) foreign investment must decrease to cover the gain
C
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Based on the CPI, how do we measure annual inflation?
a. We compute the total price of a fixed set ("market basket") of goods and services in a base year, such as 2003, and in a future year, such as 2004. b. We get CPI for 2004 by multiplying the 2004 total cost with the 2003 total cost, and divide by 100 . A similar calculation will yield the CPI value for 2003. c. We get CPI for 2004 by adding the CPI value for 2003 to the CPI value for 2004, and multiply by 100. d. We compute the total cost of a fixed set ("market basket") of goods and services in a base year, such as 2003, and in a future year, such as 2004.
Taxing interest, dividends, and estates ______ the cost of saving versus consumption.
a. equalizes b. decreases c. increases d. eliminates
Which of the following would be considered a member of the labor force?
A. a computer programmer looking for work B. an engineer who has been laid off a year ago and since then has not looked for work C. an inmate in a state prison making license plates D. a person in a mental institution
We ________ from consuming the benefits of a public good.
A. can exclude some people B. can exclude everyone C. cannot exclude anyone D. can only exclude the private sector